• EUR/AUD edged lower on Friday as traders digested the European Central Bank’s latest policy update.
• The ECB left key interest rates unchanged, as widely expected, while new economic projections showed growth forecasts revised up to 1.4% in 2025, 1.2% in 2026 and 1.4% in 2027.
• At the post-meeting press conference, ECB President Christine Lagarde said uncertainty over the outlook meant the ECB could not give forward guidance.
• Lagarde stressed that the ECB does not target exchange rates, while noting that it is watching the euro’s appreciation closely.
• Immediate resistance is located at 1.7800(Psychological level), any close above will push the pair towards 1.7884(Higher BB).
• Support is seen at 1.7685(SMA 20) and break below could take the pair towards 1.7660(50%fib).
Recommendation: Good to buy around 1.7700 with stop loss of 1.7650 and target price of 1.7780
