• EUR/AUD declined on Thursday as euro attracted selling after the European Central Bank (ECB) raised interest rates.
• The ECB raised rates by 75 basis points, in line with expectations, and signalled that it was keen to start shrinking its bloated balance sheet.
• At GMT 17:03, the pair was trading down 0.59 percent at 1.5421.
• Technical signals are bearish as RSI is heading down at 53, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.5645 (23.6%fib), any close above will push the pair towards 1.5715(24th Oct high)
• Strong support is seen at 1.5418 (38.2%fib ) and break below could take the pair towards 1.5277 (30DMA).
Recommendation: Good to sell on rally around 1.5420, with stop loss of 1.5500 and target price of 1.5330.
