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

• EUR/AUD declined below  1.6200 level  on Thursday  as Australian dollar was boosted by a hawkish outlook from the Reserve Bank of Australia and optimism over potential stimulus measures in China.

• The RBA acknowledged that the impact of Trump's win on the Australian economy remains highly uncertain, with the central bank closely monitoring China's response to potential policy changes.

• Australia's central bank has kept its policy unchanged for a year, maintaining the current cash rate of 4.35%    a significant rise from the pandemic-era rate of 0.1%.

 • The technical outlook remains bearish and points to eventual bigger losses, fourteen-day momentum is negative, reinforcing the scope for a bigger slump.   

• Immediate resistance is located at 1.6217(38.2%fib), any close above will push the pair towards 1.6295(50%fib)

• Support is seen at 1.6122 (23.6%fib) and break below could take the pair towards 1.6040(Oct 3rd low)

Recommendation: Good to sell around 1.6200, with stop loss of 1.6280 and target price of 1.6120