FxWirePro: EUR/AUD outlook weaker on renewed downside pressure

• EUR/AUD dipped    on Thursday    as upbeat Australian jobs data for January boosted Australian dolllar across the board.

• Figures from the Australian Bureau of Statistics on Thursday showed the jobless rate unexpectedly dropped to 4.1%, the lowest level since May last year, from 4.3%. Analysts had looked for a rise to 4.4% and the central bank had also predicted a 4.4% rate by the December quarter.

• Net employment jumped by 65,200 in December from November, when it dropped a revised 28,700. That was way above market forecasts of a 30,000 gain, while full-time jobs rebounded by 54,800.

• The participation rate ticked up to 66.7%, from 66.6%, while hours worked rose 0.4% to a record of over 2 billion hours.

• Immediate resistance is located at 1.7338(38.2% fib), any close above will push the pair towards 1.7406(SMA 20).

• Strong support is seen at 1.7149(23.6% fib) and break below could take the pair towards 1.7065(Lower BB).

Recommendation: Good to sell  around 1.7200, with stop loss of 1.7260 and target price of 1.7050