• EUR/AUD declined further on Monday as bearish influences from German data and Fed and ECB rhetoric pile on.
• German business sentiment worsened in September, reflected in the fall in the Ifo to 85.7 from 85.8 in August, fueling fears of recession in the euro zone..
•The pair is approaching 23.6%fib,a daily close below will accelerate towards 1.6300 level in the short term.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is bearish at 40.
• Immediate resistance is located at 1.6541(5DMA), any close above will push the pair towards 1.6626 ( 38.2%fib).
• Strong support is seen at 1.6434(23.6%fib) and break below could take the pair towards 1.6401 (Lower BB).
Recommendation: Good to sell around 1.6500, with stop loss of 1.6640 and target price of 1.6300.
