FxWirePro: EUR/AUD capped below 5-DMA, shooting star formation and bearish divergence raise scopr for downside

• EUR/AUD trades a narrow range, remains capped below 5-DMA currently at 1.4757.
   
• The pair has formed a 'Shooting Star' pattern at highs on May 5th trade and bearish following candle confirms downside.
   
• Stochs have rolled over from overbought levels and are showing bearish divergence to price action.
   
• RSI has also rolled over from overbought levels adding downside bias.
   
• We see scope for test of 1.46 (23.6% Fib retrace of 1.3626 to 1.4910 rally).
   
• Bearish invalidation only on close above 5-DMA at 1.4758.

Support levels - 1.4653 (May 4 low), 1.46 (23.6% Fib), 1.4529 (20-DMA)

Resistance levels - 1.4759 (5-DMA), 1.48, 1.4910 (May 5 high)

TIME  TREND INDEX  OB/OS INDEX   

1H          Neutral               Neutral      

4H          Neutral               Neutral       

1D          Bearish               Neutral       

1W         Neutral                Overbought     

Recommendation: Good to go short on rallies around 1.4740/50, SL: 1.48, TP: 1.47/ 1.4650/ 1.46

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -74.3468 (Bearish), while Hourly AUD Spot Index was at 64.303 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.