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FxWirePro: EUR/AUD breaks channel top, good to go long on dips

EUR/AUD has broken and closed above stiff channel top resistance on Wednesday's trade. Price action has broken above daily cloud which is now major support on the downside. Momentum studies are bullish. MACD has shown a …

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FxWirePro: EUR/AUD breaks channel top, good to go long on dips
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  • EUR/AUD has broken and closed above stiff channel top resistance on Wednesday's trade.
     
  • Price action has broken above daily cloud which is now major support on the downside.
     
  • Momentum studies are bullish. MACD has shown a bullish crossover.
     
  • We see scope for test of 200-DMA at 1.4351. Violation at 200-DMA to see further upside.
     
  • Bullish invalidation on retrace below channel top. We then see scope for test of 20-DMA at 1.41 levels.

Support levels - 1.42, 1.4180 (channel top), 1.4153 (5-DMA)

Resistance levels - 1.43, 1.4351 (200-DMA), 1.44, 1.4430 (Nov 11 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral               Neutral       
4H          Neutral               Oversold       
1D          Bullish                Neutral        
1W         Bullish                Neutral      

Recommendation: Good to go long on dips around 1.4255/65, SL: 1.4220, TP: 1.43/ 1.4350

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 80.3346 (Slightly bullish), while Hourly AUD Spot Index was at -41.5888 (Neutral) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 
 

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