FxWirePro: EUR/AUD recovers slightly but trend is still bearish

• EUR/AUD   recovered some ground  on Monday as investors assessed the impact of continued shipping disruption through the Strait of Hormuz and U.S.-Iran tensions escalated..

• The U.S. said its Navy destroyers entered the Gulf and merchant ships crossed the Strait of Hormuz, despite Iran claiming it blocked a U.S. warship.

• The Eurozone's manufacturing sector maintained its expansion in April 2026, with the Purchasing Managers' Index (PMI) holding steady at 52.2..

• Separate data showed,  the Sentix Index rose slightly in May, suggesting investors do not expect further escalation of the Iran conflict, though Germany bucked the trend with continued weakness .

• The index rose to -16.4 points from -19.2 the month before, the survey showed ⁠on Monday, better than the forecast decline to -21.0, according to analysts polled by Reuters.

•  Immediate resistance is located at 1.6410( SMA 20), any close above will push the pair towards 1.6459 (38.2%fib)

 Support is seen at 1.6230(Lower BB  ) and break below could take the pair towards 1.6173(23.6%fib).
Recommendation: Good to sell   around 1.6320, with stop loss of 1.6400 and target price of 1.6240