FxWirePro: EUR/AUD edges higher but outlook is bearish

• EUR/AUD edged higher but gains were limited  as investors awaited  Wednesday’s Federal Reserve rate decision. 

• The outcome and guidance from the Fed will be closely watched for clues on the future path of U.S. interest rates and the dollar.

• On the European side, ECB official Moulin said higher bond yields reflect increased government debt issuance and rising inflation expectations, highlighting the factors contributing to tighter financial conditions across the euro area.

• Meanwhile, German Chancellor Friedrich Merz canceled a planned trip to New York following electoral setbacks, adding a political backdrop to the euro-area market ahead of key central-bank events.

• Immediate resistance is located at 1.6207 (38.2%fib), any close above will push the pair towards 1.6219(38.2%fib).

• Immediate support is seen at 1.6085(23.6%fib) and break below could take the pair towards 1.6014(Lower BB)
    
Recommendation: Good to sell around 1.6190, with stop loss of 1.6240 and target price of 1.6110