• EUR/AUD was little changed on Thursday as traders assessed European commission revised economic growth forecast.
• The euro area economy is projected to recover slowly this year but inflation is expected to decelerate notably on falling energy prices, the European Commission said in its Winter interim forecast.
• 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 1.6548(38.2 %fib), any close above will push the pair towards 1.660(50 %fib)
• Strong support is seen at 1.6478 (23.6 %fib ) and break below could take the pair towards 1.6405 (Lower BB).
Recommendation: Good to sell around 1.6530, with stop loss of 1.6650 and target price of 1.6430
