• EUR/AUD rose on Tuesday as the euro drew support from a stronger-than-expected rebound in German investor sentiment in September.
• German investor expectations rose unexpectedly in September, showing cautious optimism despite weak economic performance.
• The ZEW's economic sentiment index, which looks at mid-term expectations, rose to 37.3 points from 34.7 points in August, beating analysts' forecasts for 26.3 points.
• The index measuring the current economic situation worsened in September, falling to -76.4 from -68.6 in August, a drop 1.4 points deeper than expected.
• Immediate resistance is located at 1.7846 (SMA 20), any close above will push the pair towards 1.7975 (38.2%fib).
• Immediate support is seen at 1.7578(50% fib) and break below could take the pair towards 1.7527(Lower BB).
Recommendation: Good to buy on dips around 1.7730, with stop loss of 1.7550 and target price of 1.7800
