• EUR/AUD strengthened on Monday after data showed German business morale unexpectedly improved in March despite the banking sector turmoil.
• An Ifo institute survey showed German business morale unexpectedly rose in March, adding to signs that Europe's largest economy is recovering despite the energy crisis and high inflation.
• The pair currently is approaching resistance at 23.6%fib . A break above would unmask 1.6330 level in the short term.
• From a technical viewpoint, RSI is strongly bullish at 67, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.6273(23.6%fib), any close above will push the pair towards 1.6323 (Higher BB).
• Immediate support is seen at 1.6216 (5DMA) and break below could take the pair towards 1.6121 (38.2%fib).
Recommendation: Good to buy on dips around 1.6230, with stop loss of 1.6120 and target price of 1.6310
