- EUR/AUD extends decline after rejection at major trendline resistance.
- The pair has broken below major trendline support at 1.4030 and is trading a narrow range amid holiday-thinned trade.
- European markets will be closed until Tuesday due to Easter holiday. The single currency remains subdued ahead of the French elections.
- Aussie on the other side remains buoyed by stellar Australia employment and upbeat China trade data.
- The pair is trading well below major moving averages and bearish RSI divergence on daily charts adds to bearish bias.
- Below 1.4030 we see next major support at 50-DMA at 1.3972. Violation there could see test of 1.3939 (Mar 31 low).
- On the flipside, we see reversal on trend only on break above trendline at 1.4215.
- Support levels - 1.3971 (50-DMA), 1.3939 (Mar 31 low), 1.3886 (61.8% Fib retrace of 1.3626 to 1.4306 rally).
- Resistance levels - 1.4046 (38.2% Fib), 1.4080 (20-DMA), 1.4094 (5-DMA).
Call update: We had advised a short call (http://www.econotimes.com/FxWirePro-EUR-AUD-rejected-at-major-trendline-resistance-slips-below-100-DMA-good-to-short-break-below-14030-641925).
Recommendation: Bias lower, stay short.
