• EUR/AUD dipped on Friday as equity , gold gains gave risk sensitive Australian dollar a boost against euro.
• Economic data for the Eurozone remains sparse until the release of next week's Purchasing Manager's Index (PMI) figures.
• EUR/AUD remains well below 38.2 %fib resistance ,Daily close below 1.6478 (23.6 %fib ) support will increase the scope for much bigger drop
• Technical signals are bearish as RSI is heading down at 49, daily momentum studies 5, 9 and 1 DMAs are trending down.
• Immediate resistance is located at 1.6543(Daily high), any close above will push the pair towards 1.6572(38.2%fib)
• Strong support is seen at 1.6478 (50 %fib ) and break below could take the pair towards 1.6438 (Feb 1st low).
Recommendation: Good to sell around 1.6500, with stop loss of 1.6600 and target price of 1.6430
