• EUR/AUD declined on Thursday as expectation that ECB is set to reduce interest rates further by 50 bps by year-end weighed on euro
• Most ECB officials are advocating for additional interest rate cuts, citing concerns over the potential persistence of inflation in the Eurozone.
• European Central Bank policymaker François Villeroy de Galhau and Greek central bank head Yannis Stournaras expressed support for another interest rate cut in the upcoming week.
• Technical signals are bearish as RSI is heading down at 40, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6312( 50% fib), any close above will push the pair towards 1.6419(61.8% fib)
• Support is seen at 1.6206 (38.2% fib) and break below could take the pair towards 1.6063(23.6% fib).
Recommendation: Good to sell on rally around 1.6230, with stop loss of 1.6290 and target price of 1.6050.
