FxWirePro: EUR/AUD set To for bigger drop, but close below key fibo needed

• The EUR/AUD slipped lower  on Thursday as traders pared back bets on Reserve Bank of Australia rate cuts.

• Data from the Australian Bureau of Statistics on Thursday showed the monthly household spending indicator surged 1.3% in October to A$78.4 billion ($51.77 billion), boosted by year-end sales events, after a 0.3% increase in the previous month.

•The surprise strength in the spending data pulled forward expectations for rate hikes by the Reserve Bank of Australia, with about a 50% chance now priced in for a move in May next year.

• The RBA has lowered rates three times this year to 3.6% and is considered certain to pause next week, though it may turn more hawkish on the policy outlook after a spike in third-quarter inflation.

•  Immediate resistance is located at 1.7691(Daily high), any close above will push the pair towards 1.7727 (SMA 20).

•  Support is seen at 1.7600(23.6%fib) and break below could take the pair towards 1.7570(Lower BB).

Recommendation: Good to sell around 1.7640 with stop loss of 1.7700 and target price of 1.7550