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• EUR/AUD edged higher on Tuesday but gains were limited in the lead-up to crucial inflation prints around the world this week.
• The spotlight is now on German inflation data due on Wednesday and the wider euro zone's reading on Friday will be watched for clues on how soon easing from the central bank could come.
• A daily close above 38.2% fib will further improve the technical outlook, and open the possibility of a rally towards 1.6400 level.
• Immediate resistance is located at 1.6346(38.2% fib), any close above will push the pair towards 1.6413 (23.6%fib)
• Support is seen at 1.6299(50% fib) and break below could take the pair towards 1.6240(61.8% fib).
Recommendation: Good to buy around 1.6320, with stop loss of 1.6160 and target price of 1.6400
