• EUR/AUD declined on Thursday as improved economic data and higher commodities prices supported Australian dollar.
• In March, the final reading of Australia's Judo Bank Services PMI rose to 54.4 from the previous month's 53.5, as per the latest data released by Judo Bank and S&P Global on Thursday.
• EUR/AUD chart has taken a turn for the worse after todays drop. Overall risk growing for a bigger drop to towards 1.6400 level
• Technical signals are bearish as RSI is heading down at 39, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.6491 ( 50% fib), any close above will push the pair towards 1.6509(9EMA)
• Support is seen at 1.6420(38.2%fib ) and break below could take the pair towards 1.6345(Jan 30th low).
Recommendation: Good to sell on rally around 1.6460, with stop loss of 1.6550 and target price of 1.6400
