• EUR/AUD rose on Tuesday as potential ceasefire in Ukraine and German defence deal boosted euro.
• Ukraine agreed to accept an immediate 30-day ceasefire in the conflict with Russia during talks with U.S. officials in Saudi Arabia.
• Germany’s leaders reached an agreement last week to reform state borrowing rules, allowing for increased defense spending and a significant boost to infrastructure investment.
• Investors are keeping a close eye on Germany’s upcoming inflation data this week, as it comes at a critical time of escalating trade tensions between the European Union and the United States.
• Immediate resistance is located at 1.7432(23.6% fib), any close above will push the pair towards 1.7500(Psychological level).
• Immediate support is seen at 1.7164(38.2% fib) and break below could take the pair towards 1.6954(50% fib).
Recommendation: Good to buy on dips around 1.7340 with stop loss of 1.7240 and target price of 1. 7400
