• The EUR/AUD eased on Wednesday after the Federal Reserve held interest rates unchanged, as widely expected, while signaling a cautious approach to future policy moves.
• Policymakers projected likely two quarter-point interest-rate cuts later this year, the same median forecast as three months ago, even as they forecast slower economic growth and higher inflation.
• Data showed Eurozone inflation was lower last month than first estimated, easing concerns that unexpectedly strong price pressures could prevent further ECB interest rate cuts..
• Immediate resistance is located at 1.7259(Daily high), any close above will push the pair towards 1.7355(23.6%fib).
• Immediate support is seen at 1.7110(38.2%fib) and break below could take the pair towards 1.6935(50% fib).
Recommendation: Good to buy on dips around 1.7150, with stop loss of 1.7100 and target price of 1.7200
