• EUR/AUD declined on Thursday as optimism of a closer fiscal union in Europe fizzled out.
• Euro also weakened after indicator which tracks the manufacturing and services sectors showed that Germany's recession eased in May but less than anticipated.
• Selling pressure will remain in the short-term, only a move above 1.6944 (23.6% fib) strong resistance would indicate the weakness in pair has run out .
• Technical signals are bearish as RSI is at 41, momentum studies 11, 21 and 30 DMAs are trending down.
• Strong resistance is located at 1.6776 ( 21 DMA), any close above will push the pair towards 1.6944 (23.6% fib)
• Immediate support is seen at 1.6600 ( Psychological level) and break below could take the pair towards 1.6496 (Lower BB).
Recommendation: Recommendation: Good to sell around 1.6700, with stop loss of 1.6990 and target price of 1.6500.
