FxWirePro: EUR/AUD gains some upside momentum, but bearish outlook remains

• EUR/AUD recovered ground  on Wednesday after the U.S. Federal Reserve left interest rates unchanged.

•  The Fed’s 8–4 vote was its most divided since 1992, highlighting the challenges for incoming Chair Kevin Warsh in advocating rate cuts, as Jerome Powell’s term ends on May 15.

• At a press conference, Powell said that despite dissent from four officials opposing an easing bias, he does not see the Fed shifting toward rate hikes...

• German inflation rose in April, driven by higher energy costs linked to the ongoing Iran war, while eurozone economic sentiment fell to a three-and-a-half-year low..

• Focus now shifts to the European Central Bank’s meeting on Thursday, where rates are widely expected to remain unchanged. Investors will closely watch forward guidance as policymakers balance persistent inflation pressures against weak growth.

• Strong  resistance is located at 1.6480(SMA 20), any close above will push the pair towards 1.6557(50%fib)

• Immediate support is seen at 1.6370(38.2%fib) and break below could take the pair towards 1.6243(Lower BB).

  Recommendation: Good to sell   around 1.6410, with stop loss of 1.6480 and target price of 1.6320