FxWirePro:EUR/AUD poised at critical support, looking vulnerable

•  EUR/AUD consolidated recent losses on Friday after a significant drop in Eurozone inflation, which heightened expectations of potential monetary policy adjustments by the ECB

• Inflation in the 20-country euro zone fell to 2.2% in August, its slowest pace since July 2021, according to Eurostat's flash reading and near the European Central Bank's 2% target.

• The data further solidified expectations that the ECB will likely cut rates at its September meeting.

• Technical signals are bearish as RSI has turned sharply lower, daily momentum studies  5, 9 and 1 DMAs are trending down. 

• Immediate resistance is located at 1.6414 (50%fib), any close above will push the pair towards 1.6472(Aug 27th high)

• Support is seen at 1.6264 (38.2 %fib ) and break below could take the pair towards 1.6200(Psychological level).

Recommendation: Good to sell   around 1.6340 , with stop loss of 1.6390 and target price of 1.6280.