• EUR/AUD held steady around 1.6950 on Tuesday as Germany announced key debt reform measures aimed at improving fiscal stability..
• Investors reacted positively to the reforms, which are expected to support economic growth and reduce financial uncertainty in the eurozone.
• Investors also await the European Central Bank policy meeting on Thursday, with traders pricing in another 25 basis-point cut.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 55,while moving averages are trending higher.
• Immediate resistance is located at 1.6961 (23.6%fib), any close above will push the pair towards 1.7000(2Psychological level).
• Immediate support is seen at 1.647 (Daily low) and break below could take the pair towards 1.6802 (38.2% fib).
Recommendation: Good to buy on dips around 1.6920, with stop loss of 1.6920 and target price of 1.7050
