• EUR/AUD erased earlier gains on Monday as worse-than-expected German Ifo data weighed on euro.
• German business sentiment took an unexpected downturn in December. The institute's most recent survey indicated a decline in both expectations and current conditions.
• Technical signals show the pair is set to lose ground in the short-term as RSI is at 44.95 bearish, daily and weekly 5, 10 & 21 MAs heading lower .
• Immediate resistance is located at 1.6326( 38.2%fib), any close above will push the pair towards 1.6363 ( 11DMA)
• Support is seen at 1.6216(23.6%fib) and break below could take the pair towards 1.6193 (May 19th low).
Recommendation: Good to sell on rally around 1.6300, with stop loss of 1.6440 and target price of 1.6220.
