FxWirePro: EUR/AUD drifts lower,could be on verge of a bigger drop

• EUR/AUD declined on Friday as   disappointing Eurozone business activity data weighed on euro.

•The Eurozone's preliminary HCOB Mfg PMI held firm at 44.2, contrary to market expectations of a 44.6 reading. Eurozone mfg  performance remained stable but below anticipated levels.

• Business activity   in Germany, Europe's largest economy, contracted in December, increasing the likelihood of a recession at the end of the year.

•In France a downturn extended faster than expected   as demand for goods and services in the euro zone's second-biggest economy deteriorated further.

• From a technical viewpoint, the moving averages are pointing downwards, while the RSI  is   bearish at 50.

• Immediate resistance is located at 1.6328(38.2%fib), any close above will push the pair towards 1.6406 ( 14DMA).

• Strong support is seen at 1.6204(Daily low) and break below could take the pair towards 1.6150 (23.6%fib).

Recommendation: Good to sell around 1.6280, with stop loss of 1.6380 and target price of 1.6200.