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

• EUR/AUD  edged higher on Tuesday as the pair found some respite   after France's contested budget had triggered a French debt rout and fuelled fears of broader stress across the euro zone.

• Budget worries pushed French debt lower ahead of the 2027 election, while Spain’s snap election added pressure on the euro. 

• Recent bond market turmoil has led investors to scale back ECB rate-hike expectations.

• Investors now see one fully priced ECB hike by March, with an 80% probability of another, down from three previously.

•  Immediate resistance is located at 1.6170(SMA20), any close above will push the pair towards 1.6203(38.2%fib)

• Support is seen at 1.6080(23.6%fib)and break below could take the pair towards 1.6033 (Lower BB)

Recommendation: Good to sell around 1.6120 , with stop loss of 1.6200 and target price of 1.6020
 

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