• EUR/AUD dipped on Friday as euro came under pressure following weaker-than-expected German retail sales and softer German inflation data
• German inflation remained flat year-on-year in January at 2.8%, preliminary data from the federal statistics office showed on Friday.
• Germany's retail sales increased by 1.8% year-on-year (YoY) in December, falling short of the anticipated 2.5% growth.
• EUR/AUD remains under pressure due to weak economic data, a dovish stance from the European Central Bank (ECB), and negative sentiment from market positioning.
• Immediate resistance is located at 1.6675 (Daily high), any close above will push the pair towards 1.6777 (23.6% fib).
• Strong support is seen at 1.6634(38.2% fib) and break below could take the pair towards 1.6503(50% fib )
Recommendation: Good to sell around 1.6700 with stop loss of 1.6800 and target price of 1.6600
