FxWirePro: EUR/AUD set for a slump, shorts hold the advantage

• EUR/AUD initial gained on Monday   but lost some ground as investor attention turned to the upcoming first round of French parliamentary elections later this week.

• Political uncertainty looms ahead of the French parliamentary elections. Marine Le Pen’s far-right RN party is leading in the polls, which is contributing to a cautious outlook for the euro.

• On the data front,German business morale unexpectedly declined in June, driven by increasingly pessimistic expectations for Europe's largest economy, according to a recent survey.

• Technical are bearish, daily RSI is negative at 37, daily momentum studies 5,8  and 11 DMAs are trending down. 

• Immediate resistance is located at 1.6174 (38.2 % fib), any close above will push the pair towards 1.6260 (50 % fib).

• Immediate support is seen at 1.6070(23.6 % fib) and break below could take the pair towards 1.6039(Lower BB).

Recommendation: Good to sell  around 1.6130, with stop loss of 1.6230,  and target price of 1.6070.