FxWirePro: EUR/AUD extends weakness below daily cloud, on track to test 200-DMA at 1.5461, stay short

• EUR/AUD is extending weakness below daily cloud, hovers around 23.6% Fib retracement at 1.5586.
   
• The pair has broken below 110-EMA which is now strong resistance at 1.5718.
   
• The pair has dipped below daily cloud and we see scope for test of 200-DMA currently at 1.5461.
   
• Momentum studies are bearish. MACD supports trend lower and Stochs are heavily bearish.
   
• We see -ve DMI dominance which adds to the bearish bias. 
   
• On the weekly charts we see bearish MACD line crossover on signal line and RSI and Stochs are biased lower.
   
• The major closed below 20W SMA in the previous week's trade. Next major bear target lies at 1.5586 (23.6% Fib) ahead of 200-DMA at 1.5461.
   
• On the flipside, 110-EMA is immediate resistance at 1.5718. Retrace above cloud bottom could see minor bullishness.

Support levels - 1.5586 (23.6% Fib), 1.55, 1.5461 (200-DMA)

Resistance levels - 1.5703 (5-DMA), 1.5718 (110-EMA), 1.5771 (Dec 1st high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-AUD-breaks-below-110-EMA-hits-9-week-lows-at-15659-bias-lower-1317421) has hit TP1.

Recommendation: Book partial profits at lows. Hold for further weakness. 

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