• EUR/AUD declined on Wednesday after survey data showed German business activity slumped in August.
• The HCOB German Flash Composite Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 44.7 from July's 48.5, hitting its lowest since May 2020.
• Bearish signals are have increased today after today drop.Pair falls sharply below the 11-DMA & 38.2% fib.
• Technical signals RSI has tuned sharply lower, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.7500 ( 5 DMA), any close above will push the pair towards 1.7629 (9 DMA)
• Support is seen at 1.7470 (23.6% fib ) and break below could take the pair towards 1.7168 (50 DMA).
Recommendation: Good to sell around 1.6800, with stop loss of 1.6900and target price of 1.6720
