FxWirePro: EUR/AUD hovers around 3 weeks low, strong bearish bias

• EUR/AUD hovered around  3 weeks low on Friday  as investors digested  uneventful European Central Bank (ECB) meeting and Eurozone CPI data

• Data released earlier on Friday suggested that Eurozone inflation will remain at or near the European Central Bank’s 2% target in the coming years.

• The ECB kept interest rates unchanged at 2% and reiterated that policy was in a "good place" as economic risks recede and the euro area shows continued resilience in the face of uncertainty..

• Traders trimmed bets on future ECB rate cuts early on Thursday after the Fed meeting, with market positioning holding steady following the ECB’s policy statement and comments from its president, Christine Lagarde.

• The ECB must keep its options open for interest rate moves at upcoming meetings to react to risks, including from financial markets, ECB policymaker Francois Villeroy de Galhau said on Friday

• Money markets were pricing in an about 50% chance of a 25-basis-point ECB rate cut by September.

•  Immediate resistance is located at 1.7609( 23.6%fib), any close above will push the pair towards 1.7552(Lower BB)

• Strong support is seen at 1.7609( 23.6%fib)and break below could take the pair towards 1.7552(Lower BB)

Recommendation: Good to sell around 1.7630 with stop loss of 1.7700   and target price of 1.7570