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• EUR/AUD retreated on Tuesday as investors digested a slew of economic data that painted a mixed picture of the Eruozone’s economic health.
• Euro zone inflation accelerated in December, an unwelcome but anticipated blip that is unlikely to derail further interest rate cuts from the European Central Bank.
• Inflation in the 20 nations sharing the euro picked up to 2.4% last month from 2.2% in November, Eurostat said on Tuesday.
• Germany, Europe's economic powerhouse, reported a bigger-than-expected rise in annual inflation for December.
• Immediate resistance is located at 1.6664 ( 38.2%fib), any close above will push the pair towards 1.6803 (23.6%fib).
• Immediate support is seen at 1.6558(38.2%fib) and break below could take the pair towards 1.6444 (50%fib).
Recommendation: Good to sell around 1.6580 with stop loss of 1.6520 and target price of 1.6700.
