FxWirePro: EUR/AUD breaks above 61.8% Fib, bias higher, stay long

Refer EUR/AUD chart on Trading View

• EUR/AUD is extending gains above 100-DMA, trades 0.47% higher on the day at 1.5853 at the time of writing.
   
• The pair has shown a decisive breakout at major trendline resistance at 1.5790, bias higher.
   
• Price action has broken above 61.8% Fib and is approaching minor resistance at 1.5880.
   
• Technical indicators are turning bullish. Stochs and RSI are biased higher. 
   
• We see bullish +DMI crossover on -ve DMI which supports upside in the pair.
   
• Break above 1.5880 to see further upside. Scope then for test of 78.6% Fib at 1.60.
   
• Retrace below 100-DMA could see further weakness. Break below 21-EMA will negate the bullish bias.
   
• Focus now on the August flash manufacturing PMIs in the Euro Zone for further impetus.

Support levels - 1.5785 (trendline), 1.5734 (100-DMA), 1.5708 (21-EMA)

Resistance levels - 1.5880 (minor trendline), 1.5995 (78.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-AUD-breaks-resistance-at-100-DMA-stay-long-above-15790-1418876) has hit TP1.

Recommendation: Book partial profits. Trail SL to 1.5780, hold for 1.5880/ 1.5960/ 1.60

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 97.5895 (Bullish), while Hourly AUD Spot Index was at -97.844 (Bearish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.