FxWirePro: EUR/AUD drifts lower,could be on verge of a bigger drop

• EUR/AUD declined on Monday  as   weak EU business activity weighed on euro

• Business activity   in Germany, Europe's largest economy, contracted in July, increasing the likelihood of a recession in the second half.

•In France a downturn extended into July as both the services and manufacturing sectors did worse than expected.

•The pair is approaching 38.2%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 50.

• Immediate resistance is located at 1.6474( 5DMA), any close above will push the pair towards 1.6523 ( 23.6%fib).

• Strong support is seen at 1.6413 (50%fib) and break below could take the pair towards 1.6303 (61.8%fib).

Recommendation: Good to sell around 1.6420, with stop loss of 1.6550 and target price of 1.6340.