- EUR/AUD has shown a decisive breakout above major trendline resistance at 1.3860.
- Bullish RSI divergence and positively bias on other technical indicators support upside in the pair.
- Eurozone inflation has risen above the European Central Bank's (ECB) target rate for the first time in four years, data from statistical agency Eurostat showed on Thursday.
- The rise is likely to further fuel the debate about the ECB soon starting to exit its very expansionary monetary policy.
- AUD dampened by weak data. After dismal Australia trade balance Data on Thursday, China's Caxin services PMI missed expectations to edge lower in Feb.
- Longer-term downtrend in the pair remains intact, but we see scope for some upside in the near-term.
Support levels - 1.3884 (23.6% Fib retrace of 1.4719 to 1.3626 fall), 1.3840 (20-DMA), 1.3826 (5-DMA)
Resistance levels - 1.4044 (38.2% Fib),1.4105 (50-DMA), 1.4173 (50% Fib)
TIME TREND INDEX OB/OS INDEX
1H Bullish Oversold
4H Bullish Near oversold
1D Bullish Neutral
1W Bearish Neutral
Recommendation: Good to go long on dips around 1.39, SL: 1.3840, TP: 1.3940/ 1.40/ 1.4040
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 16.161(Neutral), while Hourly AUD Spot Index was at -73.8366 (Bearish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
