• EUR/AUD initially dipped on Tuesday but recovered some ground as traders digested data showing euro zone factory activity contracted in December for an 18th straight month.
• S&P Global's final eurozone manufacturing Purchasing Managers' Index (PMI) increased to 44.4 in December from 44.2 in November, but remained well below the 50 mark
• Technical lean bearish, RSI is turning sharply lower, momentum studies, 9, 11 DMAs falling southwards.
• Immediate resistance is located at 1.6247(38.2% fib), any close above will push the pair towards 1.6301 (Dec 29th high)
• Support is seen at 1.6142(23.6% fib) and break below could take the pair towards 1.6088 (Lower BB).
Recommendation: Good to sell on rally around 1.6200, with stop loss of 1.6300 and target price of 1.6120
