FxWirePro: EUR/AUD bounces off major trendline support with 'Dragonfly Doji' formation, stay long above 20-DMA

• EUR/AUD bounces off major trendline support, retraces brief dip below 50-DMA, bias higher.
   
• 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.
   
• The major finds immediate resistance at 20-DMA at 1.5980, breakout at 20-DMA could see further upside.
   
• That said, bearish divergence keeps scope for downside. Break above 20-DMA raises scope for test of 1.6191 (Mar 28 high). 
   
• Rejection at 20-DMA will see retrace to 50-DMA. We see further weakness on decisive close below 50-DMA.

Support levels - 1.5930 (21-EMA), 1.5911 (5-DMA), 1.5848 (50-DMA)

Resistance levels - 1.5980 (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. Target 1.60/ 1.61

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