• EUR/AUD declined on Monday, after data showed Italian Industrial Production unexpectedly plunged in December.
• The pair dropped quickly to test (23.6 fib) at 1.6330, subsequent weak closings below 1.6330 suggest further weakness on cards. Only a close above 1.6465 (61.8 fib) would indicate the current downward pressure has eased.
• At GMT 18:30, the pair was trading 0.24% lower at 1.6352, slightly lower from daily high at 1.6323.
• On the upside, Immediate resistance is located at 1.6382 ( 38.2% fib), any close above will push the pair towards 1.6423 (50% fib)
• On the downside, support is seen at 1.6330 (23.6% fib) and break below could take the pair towards 1.6253 (Feb 6th low).
Recommendation: Good to sell on rally around 1.6420, with stop loss of 1.6465 and target price of 1.6240.
