• EUR/AUD dipped on Tuesday after data revealed the steepest drop in German investor sentiment since Russia's 2022 invasion of Ukraine.
• Data from the ZEW economic research institute showed German investor morale in April posted its strongest decline since Russia invaded Ukraine in 2022 due to the uncertainty unleashed by U.S. tariffs.
• The economic sentiment indicator dropped to -14.0 from 51.6 in March, according to the ZEW economic research institute. Analysts had expected a reading of 9.5.
• Investors now await the European Central Bank's policy meeting on Thursday, with markets widely anticipating a 25-basis-point rate cut.
• Immediate resistance is located at 1.8037(38.2%fib), any close above will push the pair towards 1.8443(23.6%fib).
• Immediate support is seen at 1.7720 (50%fib) and break below could take the pair towards 1.7394(61.8%fib).
Recommendation: Good to buy around 1.7850, with stop loss of 1.7720 and target price of 1.8100
