• EUR/AUD declined sharply on Thursday as stronger Australian dollar and downturn in euro zone manufacturing activity weighed on euro .
• HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 45.7 in April from March's 46.1.
• The pair currently is approaching support at 38.2% fib. A break under would unmask 1.6300 level in the short term.
• Technical signals are bearish as RSI is at 41, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6406(50% fib), any close above will push the pair towards 1.6476 (61.8% fib)
• Support is seen at 1.6347(38.2% fib) and break below could take the pair towards 1.6312 (Lower BB).
Recommendation: Good to sell around 1.6360 with stop loss of 1.64850 and target price of 1.6300.
