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FxWirePro:EUR/AUD dips after smaller ECB hike, more downside expected

• EUR/AUD declined on Thursday   after the European Central Bank eased its pace of rate hikes  and indicated that it may pause further increases.

• The ECB’s 25-basis-point increase was the smallest since it started lifting them last summer.

• Technical are bearish, daily RSI is negative  while 14-day momentum turned negative on Wednesday, reinforcing the downside shift. 

• Immediate resistance is located at 1.6553 ( 5DMA), any close above will push the pair towards 1.6634(38.2%fib)

• Support is seen at 1.6454(50%fib ) and break below could take the pair towards 1.6367(May 2nd low).

Recommendation: Good to sell on rally around 1.6480, with stop loss of 1.6650 and target price of 1.6400
 

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