• EUR/AUD eased on Thursday as investors digested inflation data out of Germany and Italy.
• Italy’s annual inflation rose to 1.7% in June from 1.6% in May, matching analysts’ expectations, according to a preliminary report from Istat on Monday. On a monthly basis, consumer prices increased by 0.2%.
• Germany’s annual inflation eased to 2.0% in June from 2.1% in April, according to a preliminary Destatis report released Monday. The consumer price index (CPI) remained flat on a monthly basis.
• Technical indicators remain firmly bullish, with the RSI at 61 and both the 9- and 11-day moving averages trending upward, reinforcing positive momentum.
• Immediate resistance is located at 1.7990(Higher BB), any close above will push the pair towards 1.8084 (38.2%fib)
• Strong support is seen at 1.7843(61.8%fib) and break below could take the pair towards 1.7744(SMA 20).
Recommendation: Good to buy around 1.7880, with stop loss of 1.7800and target price of 1.7960
