• EUR/AUD initially dipped but recovered ground as investors digested report that showed European Central Bank President Christine Lagarde planned to leave her role early,.
• The Financial Times reported that Christine Lagarde reportedly plans to leave her post before her term ends in October 2027, though the European Central Bank said no decision has been made.
• Potential successors for the European Central Bank include former Dutch central bank chief Klaas Knot, Pablo Hernandez de Cos, and Joachim Nagel.
• Christine Lagarde took office in 2019 and led the ECB through aggressive rate hikes in 2022–23 to control inflation. With inflation near target and rates expected to stay on hold through 2026, her departure could come during a relatively calm period.
• Technical signals are bearish as RSI is at 33, momentum studies 11,14 and 21 DMAs are trending down.
• Strong resistance is located at 1.6885 (SMA20), any close above will push the pair towards 1.6929 (38.2%fib)
• Immediate support is seen at 1.6639(23.6% fib) and break below could take the pair towards 1.6575 (Lower BB).
Recommendation: Good to sell around 1.6750, with stop loss of 1.6680 and target price of 1.6860
