FxWirePro: EUR/AUD edges higher narrowly on subdued market mood

• EUR/AUD edged higher narrowly on Thursday amid subdued market sentiment and lackluster German consumer confidence figures.

• GfK and the Nuremberg Institute data show German consumer sentiment climbing to -22.3 in October from -23.5 in September, slightly above forecasts and the strongest reading since April.

• Sentiment has improved slightly, but with the index still deeply negative, Germany’s consumer-led recovery remains uncertain.

• Following Wednesday’s weak IFO survey, these figures underscore ongoing concerns about the pace of Germany’s economic growth.

• Attention also turns to   Friday’s PCE report, a key factor in shaping expectations for the Fed’s next policy moves..

• Friday's personal consumption expenditures (PCE) price index, the Fed's preferred inflation measure, is expected to show a 0.3% month-on-month increase for August and a 2.7% year-on-year rise .

• Immediate resistance is located at 1.8030 (Higher BB), any close above will push the pair towards 1.8091(38.2%fib).

• Strong support is seen at 1.7797(SMA 20) and break below could take the pair towards 1.7735(50%fib).

Recommendation: Good to buy around 1.7830 with stop loss of 1.7720  and target price of 1.7900