• 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.
