• EUR/AUD initially dipped but recovered ground as investors digested hotter than expected US inflation data and awaited fresh catalyst
• US Labor Department data showed the core consumer price index up 0.3% in September versus economist expectations for a rise of 0.2%.
• Oil prices seesawed but Brent crude futures were above $100 a barrel, keeping investors on edge. Inflation fears stemming from the Middle East conflict have reinforced expectations of tighter monetary policy.
• Traders expect the European Central Bank to hold interest rates at its October meeting but see an 81% chance of a December hike.
• Immediate resistance is located at 1.6101(38.2%fib), any close above will push the pair towards 1.6127(SMA20).
• Immediate support is seen at 1.5967(23.6%fib) and break below could take the pair towards 1.5919(Lower BB)
Recommendation: Good to sell around 1.6060, with stop loss of 1.6100 and target price of 1.5900
