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FxWirePro: EUR/AUD gains some ground but outlook is bearish

•  EUR/AUD edged higher on Wednesday  energy shock, rates concerns and France's fiscal condition weighed on euro

• French bonds have been under pressure as expectations of higher European Central Bank rates and political uncertainty before the 2027 election raise doubts over France's ability to fix its ⁠finances.

• Wider yield spreads in the euro area weigh on the single currency by boosting expectations of ECB monetary easing, reviving worries about fiscal sustainability and stoking fears of increasing fragmentation in the euro area.

• Oil prices settled lower on Wednesday following a choppy session after the International Energy Agency agreed to speed up a release of oil stocks and prioritize diesel in a ⁠bid to curb record-high fuel prices as the Iran war squeezes global supplies.

• Immediate resistance is located at 1.6106(SMA20), any close above will push the pair towards 1.6122(38.2%fib).

• Immediate support is seen at 1.6050(23.6%fib) and break below could take the pair towards 1.6036(Lower BB)
    
Recommendation: Good to sell around 1.6120, with stop loss of 1.6200 and target price of 1.6060
 

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