FxWirePro: EUR/AUD recovers slightly from early decline but bears are not done yet

• The EUR/AUD initially dipped but recovered some ground  as investors digested Fed rate decision  and awaited ECB verdict.

• The Federal Reserve cut rates by 25 basis points and ended its $6.6 trillion balance sheet runoff, citing tighter liquidity, falling bank reserves, and limited data visibility amid the U.S. government shutdown.

• The European Central Bank is widely expected to hold interest rates unchanged for a third consecutive meeting this week, as inflation continues to cool and the eurozone economy shows signs of recovery.

•  Inflation has stabilized near the ECB’s 2% target in recent months, as the eurozone economy proved more resilient to U.S. President Donald Trump’s tariff measures than expected..

• Policymakers at the ECB are navigating multiple headwinds, from higher French borrowing costs due to political instability to the ongoing risk of trade tensions resurfacing.

• Immediate resistance is located at 1.7719(Daily high), any close above will push the pair towards 1.7809(SMA 20).

• Immediate support is seen at 1.7593(38.2%fib) and break below could take the pair towards 1.7524(23.6%fib).

Recommendation: Good to sell around 1.7820, with stop loss of 1.7900 and target price of 1.7770