• EUR/AUD declined below 1.6200 level on Thursday as sellers maintained control as investors assessed political uncertainty in France after the calling of a snap election..
• On the data front, euro zone industrial production contracted 0.1% in April, compared to analysts' expectations of 0.2% growth.
• EUR/AUD is approaching 23.6%fib support, break lower risks run towards 1.6100 level.
• Technical are bearish, daily RSI is turning negative at 36 , daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.6369(38.2%fib ), any close above will push the pair towards 1.6334(50%fib).
• Strong support is seen at 1.6180 (23.6%fib ), and break below could take the pair towards 1.6030 (Jan 2nd low).
Recommendation: Good to sell on around 1.6200 with stop loss of 1.6360 and target price of 1.6140
