FxWirePro: EUR/AUD losses momentum, but outlook is bullish

• EUR/AUD weakened Monday as France’s political crisis dragged the euro lower against the Aussie.

• 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.

• François Bayrou, the centrist prime minister, lost a confidence vote as lawmakers voted 364 to 194 to remove his minority government. 

• French President Emmanuel Macron, under pressure from opposition to dissolve parliament and resign, will instead appoint his fifth prime minister in under two years, with a decision expected in the coming days. 

• Immediate resistance is located at 1.7930 (SMA20 ), any close above will push the pair towards 1.8108(38.2%fib).

• Strong support is seen at 1.7795 (50% fib) and break below could take the pair towards 1.7725(Lower BB).

Recommendation: Good to buy on dips around 1.7800, with stop loss of 1.7700 and target price of 1.7920