• EUR/AUD advanced above 1.7900 level on Tuesday after data showed Euro zone business activity hits 16-month high.
• The HCOB Flash Eurozone Composite PMI, compiled by S&P Global, rose to 51.2 in September from 51.0 in August, marking nine straight months of growth and slightly above the Reuters forecast of 51.1.
• Separately,Germany’s PMI jumped to a 16-month high of 52.4, beating expectations of 50.6, while France’s activity contracted for the 13th consecutive month at its fastest pace since April, with the PMI dropping to 48.4.
• Technical signals are bullish as RSI is at 57, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 1.8035(Higher BB), any close above will push the pair towards 1.8087(38.2%fib).
• Strong support is seen at 1.7811 (SMA20) and break below could take the pair towards 1.7759 (50%fib).
Recommendation: Good to buy around 1.7900 with stop loss of 1.7830 and target price of 1.7970
