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FxWirePro:EUR/AUD shorts dominate after US CPI data and Fed minutes release

• EUR/AUD declined on Wednesday  as   sellers maintained control and continued to dominate following the release of US CPI data and Fed minutes.

• Labor Department's closely watched CPI report released  showed core prices growing at their slowest annual pace in over three years.

• The Federal Reserve held interest rates steady on Wednesday and pushed out the start of rate cuts to perhaps as late as December

• EUR/AUD is approaching  23.6%fib support, break lower risks run towards 1.6100 level.  

• Technical are bearish, daily RSI is turning negative  at 49 , daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.6369(38.2%fib ), any close above will push the pair towards 1.6334(50%fib).

• Strong support is seen at 1.6175 (23.6%fib ), and break below could take the pair towards 1.6030 (Jan 2nd low).

Recommendation: Good to sell on  around 1.6250 with stop loss of 1.6360 and target price of 1.6170
 

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