• EUR/AUD declined on Friday as the pair came under selling pressure after Federal Reserve Chair Jerome Powell endorsed interest rate cuts, pushing the dollar to its lowest point of 2024.
• Investors had anticipated that the Fed would start cutting rates, but Powell's comments on the labor market may have had an even greater impact.
• Drop towards 1.6350 is possible if EUR/AUD bears overcome support at 23.6%fib.
• Immediate resistance is located at 1.6600(38.2%fib), any close above will push the pair towards 1.6657(July 25th high).
• Strong support is seen at 1.6415 (23.6%fib) and break below could take the pair towards 1.6340 (Lower BB).
Recommendation: Good to sell around 1.6480 with stop loss of 1.6580 and target price of 1.6400
