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

EUR/AUD edged higher on Friday but gains were limited as investors prepared for next weeks European Central Bank meeting. The European Central Bank is widely expected to leave interest rates unchanged at its July 23...

• EUR/AUD edged higher on Friday but gains were limited as investors prepared for next week's European Central Bank meeting. • The European Central Bank is widely expected to leave interest rates unchanged at its July 23 meeting, but is projected to deliver a second rate hike of the year in September as renewed energy price gains fuel concerns over stronger inflationary pressures.

• A 20% surge in oil prices following the renewed escalation of the Middle East conflict has led markets to price in two additional interest rate hikes this year, up from just one before the collapse of the U.S.-Iran ceasefire... • The ECB has already raised interest rates once this year, setting it apart from many of its major peers, including the U.S. Federal Reserve, the Bank of England, and the Bank of Canada, which have kept policy rates unchanged.

• Immediate resistance is located at 1.6446(SMA 20), any close above will push the pair towards 1.6531(50%fib) Support is seen at 1.6338(38.2%fib)and break below could take the pair towards 1.6264 (Lower BB) Recommendation: Good to sell around 1.6390 , with stop loss of 1.6420 and target price of 1.6300