• EUR/AUD climbed on Tuesday as euro remained bid ahead of July ECB policy meeting.
• The ECB is expected to keep interest rates unchanged at this week's policy meeting. Investors will look for clues on the timing of future rate cuts from policymakers' statements.
• On the data front,the ZEW economic research institute reported that German investor confidence declined more than anticipated in July, marking its first decrease in a year.
• Technicals highlight upside risks. The 10- and 21-day moving averages lend support, daily RSI is rising at 56.
• Immediate resistance is located at 1.6227 (23.6%fib), any close above will push the pair towards 1.6264 (Jul 17th high).
• Immediate support is seen at 1.6181 (38.2%fib) and break below could take the pair towards 1.6149 (50%fib).
Recommendation: Good to buy on dips around 1.6170, with stop loss of 1.6080 and target price of 1.6260
