• EUR/AUD slipped lower on Tuesday as political turmoil in Paris pressured euro after Bayrou’s defeat in confidence vote.
• France’s parliament toppled the government on Monday over plans to curb rising national debt, intensifying a political crisis in the euro zone’s second-largest economy.
• Market participants are adopting a wait-and-see approach, as France’s political stability is viewed as a key factor for the Eurozone’s fiscal trust and economic direction.
• Technicals are favouring bearish sentiment as RSI is at 39 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 1.7857 (Daily high ), any close above will push the pair towards 1.7927(SMA 20).
• Strong support is seen at 1.7770 (38.2% fib) and break below could take the pair towards 1.7705(Lower BB).
Recommendation: Good to sell on dips around 1.7800, with stop loss of 1.7900 and target price of 1.7720
