FxWirePro: EUR/AUD breaks 50-DMA at 1.4842, bias higher, stay long

• EUR/AUD has broken above 50-DMA resistance at 1.4842, bias higher.
   
• Technical indicators support upside in the pair. MACD is now showing a bullish crossover on signal line. Stochs and RSI are biased higher.
   
• Price action attempting to break above daily Ichi cloud, currently hovering around clod top at 1.4850.
   
• Breakout above daily cloud and close above 50-DMA raises scope for test of 1.4960 (trendline).
   
• 5-DMA at 1.4764 is immediate support on the downside, break below will see further drag.
   
• 100-DMA at 1.4619 is strong support on the downside, break below could see test of channel base at 1.4370.

Support levels - 1.48, 1.4764 (5-DMA), 1.4619 (100-DMA), 1.4615 (38.2% Fib retrace of 1.3626 to 1.5226 rally)

Resistance levels - 1.49, 1.4998 (June 28 high), 1.5075 (July 7 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-rejected-at-lows-hammer-formation-signals-further-upside-830473) is approaching final target.

Recommendation: Book partial profits at highs, raise trailing stops to 1.4760. Watch out for close above 50-DMA, target 1.4960.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 70.018 (Neutral), while Hourly AUD Spot Index was at -2.44485 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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