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FxWirePro: EUR/AUD loses upside momentum but outlook is bullish

• EUR/AUD dipped   on Thursday  as investors reacted to the latest European Central Bank (ECB) interest rate decision.

• The ECB raised interest rates on Thursday as expected to curb inflation risks stemming from higher energy prices caused by the Iran conflict..

• Rising oil and gas prices pushed euro zone inflation above 3% last month, well above the ECB’s 2% target, with further increases likely as the Middle East conflict persists.

• The rate hike came as the ECB raised its 2026 inflation projection to 3.0% this year from 2.6% seen in March, and lifted the 2027 outlook to 2.3% from 2.0%..

 • Immediate resistance is located at 1.6495(Higher BB), any close above will push the pair towards 1.6555(38.2%fib)

• Support is seen at 1.6369(50%fib) and break below could take the pair towards 1.6303(SMA 20).

Recommendation: Good to buy around 1.6410, with stop loss of 1.6350 and target price of 1.6500
 

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