• EUR /AUD strengthened on Tuesday after data showed German investor confidence saw a rise in December.
• The institute announced that its economic mood index increased from 9.8 points in November to 12.8 points in December, above the forecasts of surveyed economists who had predicted a modest decline to 8.8 points.
• The euro gained 0.46% against Australian dollar , rise above the 38.2% fib resistance has reinforced the growing bullish strength.
• Technical signals show the pair could gain more ground in the short-term as RSI is rising,while moving averages are 5 and 9DMS are trending higher.
• Immediate resistance is located at 1.6483(50% fib), any close above will push the pair towards 1.6540(21DMA).
• Immediate support is seen at 1.6401(38.2% fib)and break below could take the pair towards 1.6293 (23.6% fib).
Recommendation: Good to buy on dips around 1.6450, with stop loss of 1.6350 and target price of 1.6540
