- EUR/AUD closes below 20-DMA at 1.5592 on Tuesday's trade, intraday bias lower.
- Technical studies are bias lower, and we evidence a bearish divergence on RSI and Stochs which raises scope for further downside.
- RSI and Stochs are biased lower, 5-DMA is on verge of bearish crossover on 20-DMA.
- Immediate support on the downside lies at 23.6% Fib retrace of 1.4417 to 1.5771 rally at 1.5451.
- We see bearish invalidation on close above 5-DMA at 1.5605.
- Upbeat Australia consumer confidence data likely to keep the pair supported.
- Focus on German inflation, EZ employment and industrial production data.
Recommendation: Stay short below 20-DMA, target 1.5450/ 1.54/ 1.5330.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -66.5116 (Neutral), while Hourly AUD Spot Index was at 117.433 (Bullish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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