• EUR/AUD slipped lower on Friday as Friday saw downside surprises in French and Spanish inflation data.
• European data revealed that inflation in France and Spain increased less than anticipated, raising expectations for a rate cut from the European Central Bank in October to over 90%.
•At GMT 19:45, the pair was trading down 0.28 percent at 1.6123, lowest level since 16th July.
• From a technical viewpoint, RSI is strongly bearish at 29, daily momentum studies, 11, 14 and 21 daily MAs are lower .
• Immediate resistance is located at 1.6347 (38.2% fib), any close above will push the pair towards 1.6427(Sep 24th high).
• Immediate support is seen at 1.6130 (23.6% fib) and break below could take the pair towards 1.6083 (Lower BB).
Recommendation: Good to sell around 1.6170, with stop loss of 1.6260 and target price of 1.6100
