• EUR/AUD gained ground on Tuesday as oil prices slipped, while investors assessed developments in global markets.
• Oil prices fell on Tuesday and were on track for their first decline in nearly a week as traders weighed the prospect of additional diesel supplies from Russia.
• A strong recovery appears unlikely as fiscal and political uncertainty in France, Spain and Germany is expected to persist, potentially keeping the European Central Bank on hold.
• Germany's annual inflation rate accelerated to 3.3% in September from 2.9% in August, in line with preliminary estimates.
• The figure reached its highest level since December 2023, largely reflecting a 15% jump in energy prices, their biggest increase since February 2023, amid stalled US-Iran talks and rising crude oil prices.
• Immediate resistance is located at 1.6070(Daily high), any close above will push the pair towards 1.6143(38.2%fib).
• Immediate support is seen at 1.6020(23.6%fib) and break below could take the pair towards 1.5994(Lower BB)
Recommendation: Good to sell around 1.6030, with stop loss of 1.6100 and target price of 1.5900
