FxWirePro: EUR/AUD extends losses on Eurozone woes

•  EUR/AUD slipped slightly on Wednesday as the euro came under pressure from mounting political turmoil in France and disappointing economic data out of Germany. 

•  France’s fifth prime minister in two years resigned along with his government on Monday, just hours after unveiling the cabinet.

• Lecornu is holding intensive talks with major political party leaders in a last-ditch effort to resolve France’s most severe political crisis in decades and avert snap elections, while expressing hope that a deal could be reached to lower the country’s budget deficit to 4.7–5% in 2026.

• Markets have taken fright at the political paralysis in the euro zone's second biggest economy, with investors already jittery over the country's yawning budget deficit.

• German industrial output plunged sharply in August, far exceeding expectations .Industrial production fell 4.3% month-on-month, the largest decline since March 2022, according to the Federal Statistics Office on Wednesday.

• Immediate resistance is located at 1.7691(38.2%fib), any close above will push the pair towards 1.7767(SMA 20).

• Immediate support is seen at 1.7606(Lower BB) and break below could take the pair towards 1.7573(Lower BB).

Recommendation: Good to sell around 1.7680, with stop loss of 1.7760 and target price of 1.7600