• EUR/AUD was little changed on Monday as investors analysed economic data for insights into the European Central Bank's policy direction.
• On the economic front, a survey revealed that the decline in Germany's manufacturing sector continued to accelerate in August.
• In the eurozone, manufacturing activity continued to contract in August, with demand falling at the sharpest rate of the year.
•Technical signals are bearish as RSI is lower, daily momentum studies 5, 9 and 1 DMAs are trending down.
•Immediate resistance is located at 1.6392 (50%fib), any close above will push the pair towards 1.6477(Aug 27th high)
• Support is seen at 1.6264 (38.2 %fib ) and break below could take the pair towards 1.6200(Psychological level).
Recommendation: Good to sell around 1.6310 , with stop loss of 1.6390 and target price of 1.6240.
