FxWirePro: EUR/AUD pauses decline, downside risk remains

• EUR/AUD  traded flat on Friday  as  investors focused on the outlook for euro area economy . 

• Markets increasingly see weak euro area data as a risk factor that could prevent the ECB from hiking next week  .

• A close below   support at 1.6697 (50%  fib)will give further momentum to bears, opening the way for a run towards 1.6600 level.

• Technical signals are bearish as RSI is lower at 49  , daily momentum studies  5, 9 and 10 DMAs are trending down.

•   Immediate resistance is located at 1.6774( 10DMA), any close above will push the pair towards 1.6838 ( 38.2%fib).

•  Strong support is seen at 1.6697 (50%  fib) and break below could take the pair towards 1.6624(Lower BB).

  Recommendation: Good to sell around 1.6790, with stop loss of 1.6880 and target price of 1.6700