• EUR/AUD traded in tight range on Thursday as the recent optimism from the Israel-Iran ceasefire faded, prompting investors to reassess risk sentiment.
• Meanwhile, markets also assessed the fiscal and monetary policy outlook for the European Union’s largest economies, particularly Germany and France, as policymakers balance inflation control with the need to support economic growth..
• On the data front, Germany’s GfK Consumer Climate Indicator slipped slightly in July, signaling persistent caution among consumers amid ongoing economic uncertainty.
• Technical signals are bullish as RSI is at 62, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.7917(50% fib), any close above will push the pair towards 1.8000(Psychological level)
• Strong support is seen at 1.7810 (June 24th low ) and break below could take the pair towards 1.7715(61.8% fib).
Recommendation: Good to buy around 1.7890, with stop loss of 1.7800 and target price of 1.7960
