FxWirePro: EUR/AUD recovers some ground but outlook still strongly bearish

• EUR/AUD  rebounded towards 1.6100 level on Friday as the pair recovered  from early dip as traders took profits on short positions.

• The euro  erased Thursday’s losses against the Australian dollar , the pair was last up  at    1.6102  .

• On the data front, France's services sector contracted more than anticipated in June, while a broader Eurozone reading indicated that business growth in the bloc slowed sharply this month.

• From a technical viewpoint, RSI  is strongly bearish at 34, daily momentum studies, 11, 14 and 21 daily  MAs are pointing lower .

• Immediate resistance is located at 1.6125 (38.2%fib), any close above will push the pair towards 1.6220 (38.2%fib).

• Immediate support is seen at 1.6030 (23.6%fib) and break below could take the pair towards 1.6000 (Psychological level).

Recommendation: Good to sell around 1.6120, with stop loss of 1.6220,  and target price of 1.6050