• EUR/AUD declined sharply on Wednesday after data showed Australian consumer inflation accelerated to a six-month high in May.
• Australia's CPI rose to 4.0% in May, an increase from 3.6% in April and surpassing the market estimate of 3.8%. This represents the highest level since November 2023.
• At GMT 17:24, the pair was trading down 0.32 percent at 1.6066.
• Technical signals are bearish as RSI is heading down at 33, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6165 (38.2% fib), any close above will push the pair towards 1.6256 (50% fib)
• Support is seen at 1.6063 (23.6% fib) and break below could take the pair towards 1.6008(Daily low).
Recommendation: Good to sell on around 1.6070, with stop loss of 1.6160 and target price of 1.6000.
