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FxWirePro:EUR/AUD tests 23.6%fib support, scope for further downside

• EUR/AUD declined below 1.6200 level on Thursday  as   sellers maintained control as investors assessed political uncertainty in France after the calling of a snap election..

• On the data front, euro zone industrial production contracted 0.1% in April, compared to analysts' expectations of 0.2% growth.

• EUR/AUD is approaching  23.6%fib support, break lower risks run towards 1.6100 level.  

• Technical are bearish, daily RSI is turning negative  at 36 , daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.6369(38.2%fib ), any close above will push the pair towards 1.6334(50%fib).

• Strong support is seen at 1.6180 (23.6%fib ), and break below could take the pair towards 1.6030 (Jan 2nd low).

Recommendation: Good to sell on  around 1.6200 with stop loss of 1.6360 and target price of 1.6140
 

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