FxWirePro: EUR/AUD shorts gain traction as focus shifts ECB rate decision

• EUR/AUD slipped lower on Wednesday as shorts gained traction as focus shifted to the European Central Bank's key rate decision. 

•The European Central Bank was all but certain to cut interest rates from record highs on Thursday and was likely to acknowledge it had made progress in its battle against high inflation.

• On the data front,euro zone business activity expanded in May at its quickest rate in a year as growth in services outpaced a contraction in manufacturing.

• Technical signals show the pair could lose more ground in the short-term as RSI is at 48 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.

•   Immediate resistance is located at 1.6355(50%fib), any close above will push the pair towards 1.6391 ( 61.8%fib).

• Strong support is seen at 1.6323 (38.2%fib) and break below could take the pair towards 1.6281 (23.6%fib).

  Recommendation: Good to sell  around 1.6340, with stop loss of 1.6430 and target price of 1.6230.