• EUR/AUD declined on Thursday as Australian dollar benefiting from a strong set of PMI figures.
• IHS Markit Purchasing Managers Index (PMI) showed Australian manufacturing activity at 57.3, speeding up from 52 in August and soothing fears of the impact of COVID-linked lockdowns
• At GMT 20:40, the pair was trading down 0.52 percent at 1.6095.
• Technical signals are bearish as RSI is heading down at 56, daily momentum studies 5, 9 and 1 DMAs are trending down.
• Immediate resistance is located at 1.6155 (38.2%fib), any close above will push the pair towards 1.6195 (11 DMA)
• Support is seen at 1.6058(50%fib) and break below could take the pair towards 1.5969 (61.8%fib).
Recommendation: Good to rally around 1.6100, with stop loss of 1.6200 and target price of 1.6000.
