• EUR/AUD strengthened Tuesday as data revealed that the Eurozone narrowly averted a technical recession in the fourth quarter.
• Gross domestic product (GDP) in Eurozone nations was flat in the fourth quarter compared to the previous three months, owing to robust growth in Portugal and Spain and a minor increase in Italy .
• A close below 1.6339 support will add to sterling's bearish structure opening the way towards 1.6250 level
• Technical lean bearish as RSI is lower at 49, momentum studies, 5, and 9 DMAs falling southwards.
• Immediate resistance is located at 1.6461( 50% fib), any close above will push the pair towards 1.6603 (61.8% fib)
• Strong support is seen at 1.6339(38.2% fib) and break below could take the pair towards 1.6259(Lower BB).
Recommendation: Good to sell around 1.6450, with stop loss of 1.6550 and target price of 1.6350
