FxWirePro: EUR/AUD downtrend loses momentum, bearish bias prevails

•  EUR/AUD dipped initially on Friday before paring losses as investors assessed a turbulent week of coordinated efforts by central banks to contain inflation.

•  The US Federal Reserve raised interest rates this week, while the Bank of England held rates steady but warned that further tightening could be needed if the Iran war persists.

• The central banks’ decisions reinforced the view that policymakers were moving proactively to contain inflation.

• On the data front, German producer ​prices rose more ‌than expected ​in ​August, rising by 4.6% on ⁠the ​year, the ​federal statistics office reported ​on ​Friday.

• Immediate resistance is located at 1.6198(38.2% fib), any close above will push the pair towards 1.6300(50% fib).

• Immediate support is seen at 1.6078(23.6%fiib) and break below could take the pair towards 1.6042(Lower BB).

Recommendation: Good to sell  round 1.6150, with stop loss of 1.6230 and target price of 1.6080