- EUR/AUD is extending weakness after break below 110-EMA at 1.5720, bias lower.
- The pair has dipped below daily cloud and we see scope for test of 200-DMA.
- Momentum studies are bearish. MACD supports trend lower and Stochs are heavily bearish.
- We see -ve DMI dominance which adds to the bearish bias.
- On the weekly charts we see bearish MACD line crossover on signal line and RSI and Stochs are biased lower.
- Next major bear target lies at 1.5586 (23.6% Fib) ahead of 200-DMA at 1.5454.
- On the flipside, 110-EMA is immediate resistance at 1.5721. Retrace above cloud bottom could see minor bullishness.
Support levels - 1.56/ 1.5586 (23.6% Fib), 1.55, 1.5454 (200-DMA)
Resistance levels - 1.5721 (110-EMA), 1.5735 (cloud bottom), 1.5782 (5-DMA)
Recommendation: Good to go short on rallies around 1.57/1.5720, SL: 1.5880, TP: 1.56/ 1.5585/ 1.55/ 1.5460.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -54.2655 (Neutral), while Hourly AUD Spot Index was at 87.5288 (Bullish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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