FxWirePro: EUR/AUD extends drop, faces 23.6% fib support

• EUR/AUD declined on Tuesday as revised Eurozone PMIs and softer German inflation weighed on the euro. 

•  The euro zone economy grew more slowly in December but finished 2025 with its strongest quarterly expansion in over two years, as robust services activity offset weakness in manufacturing.

• The final HCOB Eurozone Composite PMI fell to 51.5 in December from November’s 30-month high of 52.8, slightly below the earlier estimate of 51.9.

• Separate data showed, German inflation eased more than expected in December, falling to 2.0% year-on-year, according to preliminary data from the federal statistics office.

• Technical signals are bearish as RSI is at 32, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.7461(50% fib), any close above will push the pair towards 1.7583 (SMA 20)

• Immediate support is seen at 1.7291 (23.6% fib) and break below could take the pair towards 1.7234 (Lower BB).

  Recommendation: Good to sell   around 1.7360, with stop loss of 1.7410 and target price of 1.7290