• 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
