• EUR/AUD declined on Wednesday as uncertainty surrounding second round of the French vote and stronger Australian dollar contributed currency pair's movement lower.
• France's National Rally (RN) has seen an increase in efforts from other parties to block them from gaining power. To avoid splitting the anti-RN vote, more candidates are agreeing to withdraw from the upcoming run-off election.
• EUR/AUD currency pair is facing increased downside pressure, with a critical support level coming into focus.
• Technical signals are bearish as RSI is at 39, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6140 (Daily high), any close above will push the pair towards 1.6177 (38.2% fib)
• Stong support is seen at 1.6073 (23.6% fib) and break below could take the pair towards 1.6000(Psychological level).
Recommendation: Good to sell on rally around 1.6100, with stop loss of 1.6180 and target price of 1.6030
