• EUR/AUD initially dipped on Friday but recovered some ground as better than expected German producer prices supported the pair.
• German producer prices jumped at the fastest pace on record in July, underscoring the gloomy outlook for Europe's largest economy
• In an up-and-down session, the pair hit low at 1.4561 in early trading then gained towards 1.4600.
• Technical signals are bearish as RSI is at 46, daily momentum studies 21.and 30 DMAs are trending down.
• Immediate resistance is located at 1.4670( 30 DMA), any close above will push the pair towards 1.4715 (38.2% fib)
• Support is seen at 1.4574(23.6% fib ) and break below could take the pair towards 1.4442(Lower BB).
Recommendation: Good to sell on rally around 1.4620, with stop loss of 1.4740 and target price of 1.4520.
