- EUR/AUD drifts non-directional, remains capped between major moving averages.
- The pair is trading in a narrow range between 50 and 100 DMA, breakout will provide clear directional bias.
- 100-DMA is major support at 1.5256, break below will see test of 1.5155 (Jan 11 lows) ahead of 1.4935 (61.8% Fib).
- On the upside, 50-DMA at 1.5443 is strong resistance. Breakout will see test of 1.5527 (Dec 20 high).
- Technical indicators on weekly charts are slightly bullish. RSI is above 50 levels and price action is holding above 20W SMA.
- Investors are now awaiting the European Central Bank’s (ECB) monetary policy decision due later today for cues.
Recommendation: We prefer to wait for clear directional bias. Watch for breakout of range trade.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -44.0033 (Neutral), while Hourly AUD Spot Index was at -52.235 (Neutral) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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