• EUR/AUD strengthened on Wednesday as weak commodities, widespread pessimism on China's economic prospects weighed on Australian dollar .
•Dalian iron ore futures fell for the fourth straight session on Wednesday, pressured by a weakening steel market and ongoing concerns about demand in China.
•The euro pair was up 0.26% against the Australian dollar at $1.6448, highest level since May 1st .
• On the data front, Eurozone business activity stalled this month as modest growth in the services sector couldn't offset a deeper decline in manufacturing.
• Immediate resistance is located at 1.6446(23.6% fib), any close above will push the pair towards 1.6494(Higher BB).
• Strong support is seen at 1.6347(38.2% fib) and break below could take the pair towards 1.6274(50% fib).
Recommendation: Good to buy around 1.6430, with stop loss of 1.6260 and target price of 1.6500
