FxWirePro: EUR/AUD breaks below 23.6% Fib, bias lower, stay short

• EUR/AUD upside rejected at session highs at 1.4920, the pair has slipped below 23.6% Fibo 1.3626 to 1.5226 rise at 1.4850.
   
• Downside extending for 6th successive session after being rejected at major trendline resistance at 1.5225.
   
• Upside remains capped below 5-DMA, we see scope for further downside.
   
• ECB left rate unchanged, has tweaked its forward guidance on the back of a brighter economic outlook but remains cautious on inflation.
   
• EUR subdued as markets digest ECB policy whose main message is that policy will remain easy for longer.
   
• Technical indicators are biased lower, pair has dipped below weekly 100-SMA at 1.4853.
   
• 5-DMA at 1.4933 is stiff resistance, we see bearish invalidation only on close above.

Support levels - 1.4721 (weekly 200-SMA), 1.4670 (May 12 low), 1.4615 (38.2% Fib)

Resistance levels - 1.4932 (5-DMA), 1.4991 (20-DMA), 1.5210 (trendline)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-breaks-below-20-DMA-good-to-go-short-on-rallies-745087) has hit TP1.

Recommendation: Bias lower, stay short for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -79.9385 (Slightly Bearish), while Hourly AUD Spot Index was at 130.237 (Bullish) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.