FxWirePro: EUR/AUD resumes downside as ECB elaborates new strategy

•EUR/AUD declined on Thursday as euro attracted sellers after ECB meeting outcome.

• The European Central Bank, in its first official policy statement since it tweaked its inflation target, pledged not to hike borrowing costs until it sees inflation reach its 2% target.

•The pair currently is approaching support at 1.5976(50% fib). A break under 1.5976 would unmask 1.5900 level in the short term.

• Technical daily RSI drifted further lower  from over bought territory, while yesterdays inverted hammer candle is reinforcing the bearish bias. 

•Immediate resistance is located at 1.6049 ( 38.2%fib), any close above will push the pair towards 1.6126(23.6%fib)

• Strong  support is seen at 1.5976(50% fib ) and break below could take the pair towards 1.5912 (61.8%fib).

Recommendation: Good to sell   around 1.5990, with stop loss of 1.6060 and target price of 1.5900.