FxWirePro:EUR/AUD moves lower after ECB rate decision , could be on verge of a bigger drop

• EUR/AUD declined on Thursday  as the pair attracted sellers after European Central Bank cut rates for the first time since 2019.
 
•The ECB lowered its record-high deposit rate by 25 basis points to 3.75%, joining the central banks of Canada, Sweden and Switzerland.

•On the data front, euro zone retail sales fell more than anticipated in April, declining 0.5% against expectations of a 0.3% decline.

• Selling pressure will remain in the short-term, only a move above 1.6441 (50%fib) strong resistance  will shift the bias higher.

• Immediate resistance is located at 1.6378 (38.2%fib), any close above will push the pair towards 1.6408(Daily high).

• Immediate support is seen at 1.6298( 23.6%fib) and break below could take the pair towards 1.6250 (Lower BB).

Recommendation: Good to sell round 1.6350, with stop loss of 1.6450 and target price of 1.6260