FxWirePro: EUR/AUD falls sharply as French fiscal concerns weighs on euro

• EUR/AUD slipped sharply lower   on Monday  as concerns about France's ability to rein in its budget deficit weighed on the euro

• The euro came under pressure as investors worried about higher French debt costs and the government’s efforts to manage its strained finances before next year’s presidential election.

• On the data front, Euro zone business activity expanded at its fastest pace in nearly three-and-a-half years in September.

The euro zone composite PMI rose to 53.1 from 52.0, hitting its highest level since April 2023 and rounding off the bloc’s strongest quarterly growth since Q2 2022.

• Spain added to regional political uncertainty after Prime Minister Pedro Sanchez called a November 29 snap election, aiming to shore up parliamentary support after lawmakers voted down measures to address the country’s housing crisis..

•  Immediate resistance is located at 1.6165(SMA20), any close above will push the pair towards 1.6214(38.2%fib)

• Support is seen at 1.6080(23.6%fib)and break below could take the pair towards 1.6028 (Lower BB)

Recommendation: Good to sell around 1.6100 , with stop loss of 1.6200 and target price of 1.6020