FxWirePro: EUR/AUD drops to intra-day low after soft German retail sales data,vulnerable to more downside

• EUR/AUD declined   on Monday as weaker than expected German retail sales weighed on euro .

•German retail sales fell by an unprecedented 9.6% on the month in real terms after a downwardly revised increase of 1.1% in November.

• EUR/AUD slide extends to daily low and eyes support at 1.5797(38.2%fib).

• A long  wick formed on January 28th candle, suggests EUR/AUD  recent rally is faltering and bears are gaining control.  

• On the upside, Immediate resistance is located at 1.5936 ( 50%fib), any close above will push the pair towards 1.5987 (50DMA).

• On the downside, support is seen at 1.5797 (38.2% fib ) and break below could take the pair towards 1.5742 (9DMA).

Recommendation: Good to sell   around 1.5840, with stop loss of 1.5940 and target price of 1.5790.