FxWirePro: EUR/AUD drops to 5-month low on French political crisis, good to sell on rally

• EUR/AUD declined to hit 5month low on Friday as   increased political uncertainty in France  continued to put pressure on the euro.

• Marine Le Pen's far-right National Rally party (RN) is leading in opinion polls ahead of the ballot called by Macron for June 30 and July 7, albeit unlikely to win an absolute majority.

• As the far right and leftist parties gain momentum ahead of France's surprise parliamentary election investors are starting to contemplate the risk of a budget crisis at the heart of the euro area.

• EUR/AUD is approaching  23.6%fib support, break lower risks run towards 1.6100 level.  

• Technical are bearish, daily RSI is turning negative  at 35 , daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.6218(Daily high ), any close above will push the pair towards 1.6242(38.2%fib).

• Strong support is seen at 1.6152 (23.6%fib ), and break below could take the pair towards 1.6134 (Jan 2nd low).

Recommendation: Good to sell on  around 1.6250 with stop loss of 1.6360 and target price of 1.6170