FxWirePro: EUR/AUD gains some upside momentum but still bearish

• EUR/AUD initially dipped but recovered ground  on Friday as investors digested German economic data and awaited fresh catalyst.

•Official data released on Friday showed that the number of unemployed people in Germany surpassed 3 million in January, with the unemployment rate rising to 6.6%.

•Separate data showed German inflation edged up unexpectedly in January, accelerating to 2.1% year-on-year, beating forecasts that had projected EU-harmonised inflation to remain unchanged at 2.0%.

• On a more positive note, Germany’s GDP rose 0.3% in Q4, beating the 0.2% forecast, while annual growth was confirmed at 0.2%.

• Immediate resistance is located at 1.7168(38.2%fib), any close above will push the pair towards 1.7282(SMA 20).

• Strong support is seen at 1.6913(23.6%fib) and break below could take the pair towards 1.6828(Lower BB).

Recommendation: Good to sell around 1.7050 with stop loss of 1.7120 and target price of 1.6900