• 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.
