• EUR/AUD declined on Thursday as dovish comments from European Central Bank policymakers weighed on Euro.
• European Central Bank policymakers appeared content with the drop in inflation when they met last month but argued for a gradual policy easing given stubborn price pressures.
• The bank next meets on Oct. 17 and a cut is almost fully priced in with a December move also firmly expected.
• Technical signals are bearish as RSI is heading down at 44, daily momentum studies 5, 9 and 1 DMAs are trending down.
• Immediate resistance is located at 1.6300 any close above will push the pair towards 1.6111(Higher BB)
• Strong support is seen at 1.6171(23.6 %fib ) and break below could take the pair towards 1.6063Lower BB).
Recommendation: Good to sell on rally around 1.6340, with stop loss of 1.3645 and target price of 1.6290
