• EUR/AUD declined on Monday as renewed concerns about China's property sector and looming U.S. labour data weighed on the pair.
• Investors are concerned that a collapse at Evergrande could hurt an already fragile Chinese economy and drag on global growth.
• The pair is likely to see more downside ,drop below has heighted chance of test of 1.5894 (23.6%fib).
• Technical signals are bearish as RSI is heading down at 40, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.5878 (38.2%fib), any close above will push the pair towards 1.6040 (5 DMA)
• Immediate support is seen at 1.5598 (38.2%fib) and break below could take the pair towards 1.5894 (23.6%fib).
Recommendation: Good to sell on rally around 1.5890, with stop loss of 1.6100 and target price of 1.5800
