FxWirePro: EUR/AUD reverses recent rally, bias back to downside

• EUR/AUD initially gained but reversed course  as markets absorbed Fed meeting outcome and  inflation   data from Australia.

• Federal Reserve kept U.S. interest rates unchanged while signaling possible easing in September if inflation cools.

• The annual CPI inflation rate climbed to 3.8% in the second quarter, up from 3.6% in the first quarter, in line with forecasts. For June alone, CPI rose 3.8% compared to the same month the previous year.

• EUR/AUD has seen a 1.6527 -1.6697 range on Wednesday , 23.6%fib  resistance remains a stumbling block. Break above  would entice bulls.

• Immediate resistance is located at 1.6637(23.6%fib), any close above will push the pair towards 1.6549(Higher BB).

• Strong support is seen at 1.6531(38.2% fib) and break below could take the pair towards 1.6430 (50% fib).

Recommendation: Good to sell  around 1.6550, with stop loss of 1.6700 and target price of 1.6450