• EUR/AUD slipped lower on Wednesday as euro crosses were pressured after US inflation data.
• U.S. CPI rose at an annual rate of 2.9% in December, in line with expectations. Markets cheered the core inflation number that rose by 3.2%, however was below forecasts..
• In France, consumer prices rose 1.8% year-on-year in December, while Spain's EU-harmonised 12-month inflation rate rose to 2.8%.
• EUR/AUD remains well below 38.2%fib,daily close below 50%fib will increase the scope for much bigger drop.
• Immediate resistance is located at 1.6646(38.2%fib), any close above will push the pair towards 1.6796(23.6%fib)
• Support is seen at 1.6514(50 %fib ) and break below could take the pair towards 1.6470(lower BB).
Recommendation: Good to sell around 1.6540 , with stop loss of 1.6630 and target price of 1.6460
