FxWirePro: EUR/AUD retraces dip below 50-DMA, 'Dragonfly Doji' formation adds to bullish bias

• EUR/AUD bounces off 50-DMA support, retraces brief dip below.
   
• The pair is extending gains for 3rd straight session and technical indicators are turning bullish.
   
• We evidence a 'Dragonfly Doji' formation at lows which adds to the bullish bias.
   
• Stochs have rolled over from oversold levels and RSI has edged above 50 levels.
   
• Price action has edged above 21-EMA and finds immediate resistance at 20-DMA at 1.5978.
   
• Breakout at 20-DMA could see further upside, scope then for test of 1.6191 (Mar 28 high).
   
• That said, bearish divergence keeps scope for downside, we see weakness on decisive close below 50-DMA 1.5843.

Support levels - 1.5930 (21-EMA), 1.59, 1.5811 (55-EMA), 1.5628 (110-EMA)

Resistance levels - 1.5978 (20-DMA), 1.6061 (April 9 high), 1.61, 1.6191 (Mar 28 high)

Recommendation: Watch out for breakout at 20-DMA to go long.

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