• 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.
