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FxWirePro:EUR/AUD downside pressure builds, key support level in focus

• EUR/AUD declined on Monday  as  pair attracted seller after weak Eurozone  PMI data.

• A survey from S&P Global shows that business activity in the euro zone sharply declined this month, with a stall in the services sector and a worsening drop in manufacturing.

• The contractions were widespread, with Germany's downturn worsening, while France slipped back into contraction after a temporary boost from the Olympic Games in August.

• Technical signals are bearish as RSI is heading down  at 36, daily momentum studies  5, 9 and 1 DMAs are trending down. 

•  Immediate resistance is located at 1.6311 (50 %fib), any close above will push the pair towards 1.6405(61.8 %fib)

• Strong support is seen at 1.6226(38.2 %fib ) and break below could take the pair towards 1.6181(Lower BB).

Recommendation: Good to sell on rally around 1.6260, with stop loss of 1.6350 and target price of 1.6190.
 

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