• EUR/AUD strengthened on Monday as investors reacted to growing economic divergence between the U.S. and the eurozone.
• This week, EU finance ministers will meet to discuss various funding options for defense, including joint borrowing, utilizing existing EU funds, and expanding the role of the European Investment Bank..
• Germany's leaders agreed last week to reform state borrowing rules to increase defense spending and allocate €500 billion ($541 billion) for infrastructure investments over the next decade.
• Investors are closely watching Germany's upcoming inflation data this week, as it comes amid heightened trade tensions between the European Union and the United States.
• Immediate resistance is located at 1.7288(higher BB), any close above will push the pair towards 1.7352(Higher BB).
• Immediate support is seen at 1.7160(38.2% fib) and break below could take the pair towards 1.7011(50% fib).
Recommendation: Good to buy on dips around 1.7240 with stop loss of 1.7180 and target price of 1. 7300
