- EUR/AUD is extending downside after being rejected at major trendline resistance at 1.5225.
- The pair has broken below 20-DMA and we see scope for further downside.
- ECB policy decision will remain the main market driver for the Euro today, dovish tilt expected in Draghi's presser.
- Euro took a beating yesterday after Bloomberg headlines cited that the ECB is said to cut inflation forecasts through 2019.
- Aussie erases dismal trade data led downside as upbeat Chinese trade data extends support.
- Technical indicators are biased lower, upside was rejected at session highs at 1.4949.
- 5-DMA at 1.50 is stiff resistance, we see bearish invalidation only on close above.
Support levels - 1.4849 (23.6% Fibo 1.3626 to 1.5226 rise), 1.4721 (weekly 200-SMA), 1.4670 (May 12 low)
Resistance levels - 1.50 (converged 5 and 20-DMA), 1.5210 (trendline), 1.5226 (June 1 high)
Recommendation: Good to go short on rallies around 1.50, SL: 1.5220, TP: 1.4850/ 1.4720/ 1.4670
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -113.085 (Bearish), while Hourly AUD Spot Index was at 115.633 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
