• EUR/AUD declined on Wednesday as pair attracted seller after the U.S. Federal Reserve opted for a supersized cut .
• The central bank reduced the overnight rate by half a percentage point, surpassing the typical quarter-point change, as it expressed heightened confidence that inflation will continue to decline toward its 2% annual target.
• Markets are now fully pricing in a cut of at least 25 basis points at the central bank's next meeting in November, with a roughly 40% chance for another 50 basis point cut.
• Technical signals are bearish as RSI is heading down at 44, daily momentum studies 5, 9 and 1 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.6483(38.2 %fib), any close above will push the pair towards 1.6533(Sep 16th high)
• Strong support is seen at 1.6349(23.6 %fib ) and break below could take the pair towards 1.6256(Lower BB).
Recommendation: Good to sell on rally around 1.6470, with stop loss of 1.6550 and target price of 1.6380
