• EUR/AUD eased on Friday as investors digested weaker-than-expected German GDP data alongside remarks from Fed Chair Jerome Powell at the Jackson Hole Symposium.
• Powell signaled the possibility of a September rate cut, though he stopped short of a firm commitment, keeping markets focused on upcoming U.S. data for further direction.
• Germany’s economy contracted 0.3% in Q2 as U.S. demand slowed after front-loaded purchases ahead of tariffs.
• Germany’s statistics office on Friday revised its preliminary Q2 GDP reading to a 0.3% contraction from 0.1%, further clouding hopes of a sustained recovery in Europe’s largest economy this year.
• Technical signals show the pair could lose gain more ground in the short-term as RSI is at 53 bullish, daily momentum studies 9, 10 and 11 DMAs are trending up.
• Immediate resistance is located at 1.8148 ( 23.6%fib), any close above will push the pair towards 1.8179 (Higher BB)
• Support is seen at 1.8024(Aug 20th low ) and break below could take the pair towards 1.7888(38.2%fib).
Recommendation: Good to buy around 1.8000, with stop loss of 1.7920 and target price of 1.8080.
