- EUR/AUD has broken out of range trade between 50 and 100 DMA, bias higher.
- Germany's conservatives and SPD have agreed a coalition government deal (source Spiegel Online) which is likely to keep the pair supported.
- The pair is trading in a rising channel pattern and 5-DMA at 1.5664 is strong support.
- Price action has broken above 50-DMA and daily cloud and we see scope for test channel top at 1.60 levels.
- Technical studies support upside in the pair. RSI and Stochs are biased higher. 20-DMA is on verge of bullish crossover on 50-DMA.
- 50-DMA at 1.5437 is strong support. Break below could test 100-DMA at 1.5311. Violation at 100-DMA invalidate bullish bias.
Support levels - 1.5664 (5-DMA), 1.5437 (50-DMA), 1.5425 (20-DMA)
Resistance levels - 1.58, 1.5952 (78.6% Fib retrace of 1.6585 to 1.3626 fall), 1.60
Recommendation: Good to go long on dips around 1.5670, SL: 1.5550, TP: 1.5790/ 1.5950/ 1.60
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -44.8878 (Neutral), while Hourly AUD Spot Index was at -24.9911 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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