FxWirePro: EUR/AUD bullish outlook with scope to target 1.6550

• EUR/AUD firmed    on Wednesday  as investors hoped for peace in the Middle East despite rising tensions.

•  Trump said on Wednesday that Iran had taken too long to negotiate a deal and would “have to pay the price,” later warning that the U.S. could attack “very hard” if no peace agreement is reached.

• Iran’s Revolutionary Guards said they launched missile and drone attacks on U.S. military bases in Jordan, Kuwait, and Bahrain in retaliation for American strikes on Iranian targets near the Strait of Hormuz.

• Market participants now turn  their attention to the ECB’s upcoming policy announcement on Thursday.

• The European Central Bank is expected to raise interest rates to curb inflation, which remains above the 2% target, despite ongoing economic uncertainty linked to the Iran war.

• Investors will also closely monitor any guidance from policymakers on the pace of future tightening
 
•   Immediate resistance is located at 1.6491(Higher BB), any close above will push the pair towards 1.6534(38.2%fib)

• Support is seen at 1.6353(38.2%fib) and break below could take the pair towards 1.6296(SMA 20).

Recommendation: Good to buy around 1.6480, with stop loss of 1.6400 and target price of 1.6550