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FxWirePro: EUR/AUD uptrend gains momentum but hurdles ahead


•  EUR/AUD firmed on Tuesday after Germany’s parliament approved a significant spending surge, signaling increased investment and economic stimulus.

• The German parliament’s approval of a significant spending increase marks a departure from decades of fiscal restraint, aiming to boost economic growth and strengthen military capabilities.

• The approval in the Bundestag  l boosts Friedrich Merz, giving him billions to spur investment after two years of economic contraction. 

•  Technical signals show the pair could gain more ground in the short-term as RSI is at 65,while moving averages are trending higher.

• Immediate resistance is located at 1.7358(23.6%fib), any close above will push the pair towards 1.7425(Higher BB).

• Immediate support is seen at 1.7084(March 18th low) and break below could take the pair towards 1.7022(50% fib).

Recommendation: Good to buy on dips around 1.7180, with stop loss of 1.7100 and target price of 1.7250
 

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