• EUR/AUD declined on Monday as weak EU business activity weighed on euro
• Business activity in Germany, Europe's largest economy, contracted in July, increasing the likelihood of a recession in the second half.
•In France a downturn extended into July as both the services and manufacturing sectors did worse than expected.
•The pair is approaching 38.2%fib,a daily close below will accelerate towards 1.6300 level in the short term.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is bearish at 50.
• Immediate resistance is located at 1.6474( 5DMA), any close above will push the pair towards 1.6523 ( 23.6%fib).
• Strong support is seen at 1.6413 (50%fib) and break below could take the pair towards 1.6303 (61.8%fib).
Recommendation: Good to sell around 1.6420, with stop loss of 1.6550 and target price of 1.6340.
