• EUR/AUD recovered towards level 1.7400 level after data showed German investor morale jumps to highest level in almost five years.
• German investor morale rose strongly in January to its highest value since August 2021, the ZEW economic research institute said on Tuesday, as expectations about Germany's economic situation improve.
• The index rose to 59.6 points in January. Analysts polled by Reuters had expected the January reading to rise to 50.0 points, from last month's 45.8.
• Meanwhile, the ZEW's assessment of the current economic situation also improved, rising to minus 72.7 points from minus 81.0 points in the previous month.
• Technical signals are bearish as RSI is at 43, momentum studies 11,14 and 21 DMAs are trending down.
• Strong resistance is located at 1.7457(SMA 20), any close above will push the pair towards 1.7512 (38.2%fib)
• Immediate support is seen at 1.7310 (23.6% fib) and break below could take the pair towards 1.7272 (Lower BB).
Recommendation: Good to sell around 1.7430, with stop loss of 1.7480 and target price of 1.7350
