• EUR/AUD edged higher on Friday but gains were limited as investors analyzed some of the first Eurozone economic data releases of 2025.
• Eurozone manufacturers finished last year on a poor note, with manufacturing activity decreasing more swiftly and no promise of a near-term turnaround.
• The slowdown remained broad, with Germany, France, and Italy—the Eurozone's three largest economies mirroring an industrial contraction.
• Immediate resistance is located at 1.6597(38.2% fib), any close above will push the pair towards 1.6739 (23.6% fib).
• Strong support is seen at 1.6487 (50% fib) and break below could take the pair towards 1.6370(61.8% fib)
Recommendation: Good to sell around 1.6600, with stop loss of 1.6700 and target price of 1.6520
