• EUR/AUD edged higher on Wednesday but gains were limited as investors digested German regional inflation data.
• German inflation rose slightly more than forecast to 2.8% in May,analysts polled had forecast a reading of 2.7%, after a year-on-year increase in consumer prices of 2.4% in April.
• Economists are paying close attention to the data from the wider euro zone on Friday.
• A daily close below 23.6% fib will open the possibility of a drop towards 1.6200 level.
• Immediate resistance is located at 1.6360(38.2% fib), any close above will push the pair towards 1.6378 (Higher BB)
• Support is seen at 1.6280(23.6% fib) and break below could take the pair towards 1.6237(Lower BB).
Recommendation: Good to sell around 1.6320, with stop loss of 1.6460 and target price of 1.6240
