FxWirePro: EUR/AUD firms slightly, but outlook remains bearish

• EUR/AUD firmed on Thursday as Australian dollar weakeneagainst euro  after Australian labour-market data showed unemployment rose to its highest level since November 2021.

• Australian employment rose by 39.5K in August, comfortably beating the 20K market forecast. However, the unemployment rate climbed to 4.6% against expectations of 4.5%, pointing to some easing in labour-market conditions despite robust job creation..

• Geopolitical tensions further weighed on the Australian dollar after Iran’s President Masoud Pezeshkian said Tehran and Washington were still far apart on negotiations aimed at resolving the conflict.

•  Focus now turns to the RBA’s policy meeting on Tuesday, where markets broadly expect a 25-basis-point rate increase. Recent labour-market weakness, including a rise in unemployment, could nevertheless prompt a more cautious tone in its forward guidance.

• Immediate resistance is located at 1.6237 (38.2%fib), any close above will push the pair towards 1.6274(Higher BB).

• Immediate support is seen at 1.6163(SMA 20) and break below could take the pair towards 1.6078(23.6%fib)
    
Recommendation: Good to sell around 1.6250, with stop loss of 1.6350 and target price of 1.6160