FxWirePro: EUR/AUD breaks major trendline resistance at 1.3860, good to go long on dips

• 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.