• EUR/AUD eased on Friday as euro was weighed down by uncertainty over European Central Bank President Christine Lagarde's tenure.
• Christine Lagarde’s future at Europe’s central bank is uncertain after the Financial Times reported she may step down before next spring’s French election, giving Emmanuel Macron a say in her replacement.
• Christine Lagarde downplayed talk of an immediate departure but left open the possibility of stepping down before her contract ends in October 2027.
• The ECB stated that President Lagarde has not made a decision yet, hinted at discussions regarding the end of her term, but did not directly refute the Financial Times report.
• Technical signals are bearish as RSI is heading down at 38, daily momentum studies 5, 9 and 11 DMAs are trending down.
• Immediate resistance is at 1.9217(38.2% fib).), with a close above potentially pushing the pair to 19387 (50% fib).
• Support is at 1.8982(23.6% fib), and a break below could push the pair towards 1.8932 (Lower BB).
Recommendation: Good to sell around 1.9030, with stop loss of 1.9100 and target price of 1.8950
