• EUR/AUD declined on Tuesday as euro was weighed down amid European political uncertainty.
• French President Emmanuel Macron’s unprecedented decision to dissolve parliament and call for a snap election has spooked political stability, suggesting a severe political crisis and introducing uncertainty in both France and the wider eurozone.
• The pair hit daily low at 1.6239 and was last trading at 1.6255 at (GMT 20:20).
• Technical signals are bearish as RSI is at 41, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6300 (38.2% fib), any close above will push the pair towards 1.6359 (50% fib)
• Strong support is seen at 1.6239 (23.6% fib ) and break below could take the pair towards 1.6209(Lower BB).
Recommendation: Good to sell around 1.6260, with stop loss of 1.6360 and target price of 1.6200
