FxWirePro: EUR/AUD bounces off 100-DMA, weakness only on close below

• EUR/AUD has bounced off 100-DMA support with a hammer formation on Thursday's trade.
• The pair is trading in a slopping channel and break below 100-DMA will see further downside.
• Next strong support below 100-DMA is seen at 200-DMA at 1.4394, break below could accentuate weakness.
• Longer-term trend likely lower as upside from 4-year lows at 1.3626 (Feb 2017) seems to have run out of momentum.
• RSI is now converging with price action. MACD is also supporting trend lower, momentum with the bears.
• Decisive breakout above 20-DMA at 1.4774 could see retest of channel top.

Support levels - 1.4615 (38.2% Fib retrace of 1.3626 to 1.5226 rally), 1.4605 (cloud base), 1.4594 (100-DMA)

Resistance levels - 1.4774 (20-DMA), 1.48, 1.4849 (nearly converged 23.6% Fib and cloud top)

Recommendation: We prefer to wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 84.2341 (Neutral), while Hourly AUD Spot Index was at 69.1788 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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