FxWirePro: EUR/AUD attracts selling interest, vulnerable to more downside

• EUR/AUD declined on Friday  after data showed Euro zone manufacturing activity fell in December.

•  Eurozone factory activity slipped in December, with production declining for the first time in 10 months, driven by falling new orders, a survey revealed..

• The HCOB Eurozone Manufacturing PMI dropped to 48.8 in December from 49.6 in November, below the preliminary 49.2 estimate, marking the weakest reading in nine months.

• Germany’s PMI fell to a 10-month low, the weakest among eight monitored countries, while Italy and Spain returned to contraction territory..

• Technical signals are bearish as RSI is at 39, momentum studies  11,14  and 21 DMAs are trending down. 

• Strong  resistance is located at 1.7611( 20 DMA), any close above will push the pair towards 1.7631 (38.2% fib)

• Immediate support is seen at 1.7475 (23.6% fib) and break below could take the pair towards 1.7418 (Lower BB).

  Recommendation: Good to sell   around 1.7530, with stop loss of 1.7600 and target price of 1.7430