• The EUR/AUD eased on Thursday after the European Central Bank held rates steady and lifted forecasts, as expected.
• The European Central Bank left policy rates unchanged on Thursday and raised parts of its growth and inflation outlook, likely shutting the door on additional rate cuts in the near term..
•Reiterating its data-dependent, meeting-by-meeting approach, the ECB kept policy options open following Isabel Schnabel’s comment last week that a rate increase could be the next step.
•The ECB warned that global uncertainty would remain a headwind for the euro area economy and renewed its appeal to national governments to press ahead with reforms.
• The ECB’s new forecasts still show inflation slipping under 2% in the coming year and again in 2027, mainly driven by softer energy costs, with a return to the target level anticipated in 2028.
• Immediate resistance is located at 1.7853 (50%fib), any close above will push the pair towards 1.7902(Higher BB).
• Support is seen at 1.7706(38.2%fib) and break below could take the pair towards 1.7634(Nov 13th low).
Recommendation: Good to buy around 1.7720 with stop loss of 1.7650 and target price of 1.7790
