• EUR/AUD hit one week high on Thursday after the ECB raised interest rates and signaled persistent inflation risks from the war-related energy shock, boosting expectations of further hikes.
• The ECB lifted its key interest rate by 25 basis points to 2.5% on Thursday, its second increase of the year, as policymakers moved to contain inflation risks from higher energy prices linked to the Iran war.
• ECB President Christine Lagarde warned that inflation risks remain tilted to the upside, with price pressures potentially staying above target for a prolonged period..
• Oil prices jumped more than 3% on the day, with benchmark Brent crude reaching $105 a barrel after a surge in attacks on shipping raised concerns over potential supply disruptions.
• Immediate resistance is located at 1.6197(38.2%fib), any close above will push the pair towards 1.6234(SMA 20).
• Immediate support is seen at 1.6075(23.6%fib) and break below could take the pair towards 1.6040(Lower BB)
Recommendation: Good to buy around 1.6200, with stop loss of 1.6150 and target price of 1.6280
