• EUR/AUD declined on Thursday as euro was weighed down by dowbeat Euro zone PMI data.
• The pair currently is approaching support at 1.6776 (100 DMA ). A break under 1.6776 would unmask 1.6000 level in the short term.
• IHS Markit’s Flash Composite Purchasing Managers’ Index (PMI), seen as a good gauge of economic health, sank to 13.5, by far its lowest reading since the survey began in mid-1998.
• Technical signals are bearish as RSI is at 44.31, daily momentum studies 5, 9 and 10 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.6957 ( 5 DMA), any close above will push the pair towards 1.7116 (5 DMA)
• On the downside, support is seen at 1.6776 (100 DMA ) and break below could take the pair towards 1.6691 (100 DMA).
Recommendation: Good to sell on rally around 1.6950, with stop loss of 1.7500 and target price of 1.6450
