• EUR/AUD declined on Tuesday as revised Eurozone PMIs and softer German inflation weighed on the euro.
• The euro zone economy grew more slowly in December but finished 2025 with its strongest quarterly expansion in over two years, as robust services activity offset weakness in manufacturing.
• The final HCOB Eurozone Composite PMI fell to 51.5 in December from November’s 30-month high of 52.8, slightly below the earlier estimate of 51.9.
• Separate data showed, German inflation eased more than expected in December, falling to 2.0% year-on-year, according to preliminary data from the federal statistics office.
• Technical signals are bearish as RSI is at 32, momentum studies 11,14 and 21 DMAs are trending down.
• Strong resistance is located at 1.7461(50% fib), any close above will push the pair towards 1.7583 (SMA 20)
• Immediate support is seen at 1.7291 (23.6% fib) and break below could take the pair towards 1.7234 (Lower BB).
Recommendation: Good to sell around 1.7360, with stop loss of 1.7410 and target price of 1.7290
