FxWirePro: EUR/AUD downtrend slows, but bearish sentiment remains

• EUR/AUD initially gained but gave up most of the ground as investors assessed  Euro zone  economics data.

• Eurozone factory activity returned to contraction in September as new orders fell at the sharpest pace in six months, highlighting fragile industrial recovery.

• The HCOB Eurozone Manufacturing PMI dropped to 49.8 in September from 50.7 in August, slipping back below the 50 threshold that marks growth.

• Separate data showed, Eurozone inflation rose to 2.2% in September from 2.0% in August, matching economists’ expectations  .

• The Eurozone core inflation rate, excluding food and energy, remained steady at 2.3% in September despite rising services prices, Eurostat reported Wednesday.

•  Immediate resistance is located at 1.7787 (SMA 20), any close above will push the pair towards 1.7905 (50%fib)

• Strong support is seen at 1.7623(38.2%fib) and break below could take the pair towards 1.7570(Lower BB).

Recommendation: Good to sell around 1.7740, with stop loss of 1.7800 and target price of 1.7680