• EUR/AUD declined on Wednesday as euro was weighed down in the wake of Tuesday's fall in growth and inflation data.
• Data on Tuesday which showed inflation in the euro zone fell fast and the economy began to contract
• A close below support at 38.2%fib will give further momentum to bears, opening the way for a run towards 1.6400 level.
• Technical signals show the pair could lose more ground as RSI is at 40 bearish, and 5, 9,11 DMA’s are trending south.
• Immediate resistance is located at 1.6558 (50%fib), any close above will push the pair towards 1.6603(5 DMA).
• Immediate support is seen at 1.6478 (38.2%fib) and break below could take the pair towards 1.6373 (23.6% fib).
Recommendation: Good to sell round 1.6500, with stop loss of 1.6580 and target price of 1.6430
