• EUR/AUD initially gained on Monday but initial rally fizzled out as euro was weighed down after data showed German Ifo business climate index missed expectations.
• The Ifo institute said its business climate index fell to 100.8 from a revised figure of 101.7 in June. Analysts had pointed to a July reading of 102.1.
• EUR/AUD dips below the 50% fib and trades around 1.5985.
• The current mild downward pressure is deemed intact as long as the pair does not move above 38.2% fib resistance.
• Immediate resistance is located at 1.5994(50%fib), any close above will push the pair towards 1.6054(38.2%fib)
• Support is seen at 1.5954 (11DMA ) and break below could take the pair towards 1.5923 (61.8%fib).
Recommendation: Good to sell around 1.5990, with stop loss of 1.6080 and target price of 1.5900.
