FxWirePro: EUR/AUD edges higher but bearish outlook persists

• EUR/AUD   recovered some ground on Monday as  Australian dollar dipped after weaker-than-expected Chinese economic data. 

•Factory activity at the world’s largest manufacturer returned to contraction, according to a private PMI, a day after official data showed weakness for an eighth straight month, though at a slower pace.

• China’s RatingDog PMI fell to 49.9 in November from 50.6 in October, missing the 50.5 forecast and slipping back into contraction.

•Focus now turns to appearances by Reserve Bank of Australia Governor Michele Bullock and Deputy Governor Andrew Kent at the Senate Economics Legislation Committee on Wednesday.

 Investors will also be watching Australia’s GDP data on Wednesday, where expectations are centered on a 0.7% quarter-on-quarter rise.

•  Immediate resistance is located at 1.7779(SMA 20), any close above will push the pair towards 1.7835 (50%fib).

•  Support is seen at 1.7715(38.2%fib) and break below could take the pair towards 1.7624(Lower BB).

Recommendation: Good to sell around 1.7770 with stop loss of 1.7860 and target price of 1.7700