• EUR/AUD declined on Thursday as slowing Eurozone inflation stoked bets that European Central Bank will soon be cutting interest rates.
• Data on Thursday showed that euro zone inflation slowed to 2.4% year on year in November from 2.9% in October, well below expectations of a fall to 2.7%.
• The pair is heading towards the lower 23.6%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 38, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6541(38.2%fib ), any close above will push the pair towards 1.6554 (5DMA).
• Strong support is seen at 1.6436 (23.6%fib ), and break below could take the pair towards 1.6392(Oct 2nd low).
Recommendation: Good to sell on around 1.6490 with stop loss of 1.6580 and target price of 1.6400
