• EUR/AUD declined on Friday as renewed concerns about the impact of Chinese real estate major Evergrande's debt woes are weighed on the pair.
• The pair, already trading lower on the day, extended its drop to hit 1.5936, lowest since Sep 7th.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 40 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 1.5991 ( 38.2%fib), any close above will push the pair towards 1.6063 (50%fib).
• Immediate support is seen at 1.5936 (Lower BB) and break below could take the pair towards 1.5900 (23.6% fib).
Recommendation: Good to sell around 1.5940, with stop loss of 1.6000 and target price of 1.5870.
