• EUR/AUD remained range-bound on Wednesday as market focus shifted to the European Central Bank’s policy decision on Thursday.
• The ECB is expected to cut interest rates again, keeping future policy options open despite increasing calls for a pause in its ongoing easing cycle.
• Rate cut on Thursday would bring the deposit rate to 2.0%, which the ECB considers "neutral" - no longer holding down the economy but not yet boosting it either.
• Investors expect a pause in July, with some cautious ECB policymakers urging a break to reassess the impact of ongoing uncertainty and policy changes at home and abroad.
• Immediate resistance lies at 1.7775 (Higher Bollinger Band), a close above could push the pair toward 1.7920 (38.2% fib).
• Support is seen at 1.7497 (50% fib), a break below may target 1.7303 (Lower Bollinger Band).
Recommendation: Consider buying near 1.7560 with a stop loss at 1.7480 and a target price of 1.7650
