FxWirePro:EUR/AUD downside pressure builds, key support level in focus

• 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