FxWirePro: EUR/AUD hits fresh 10-month lows at 1.3811, bias lower, good to short rallies

• EUR/AUD extends slide to hit fresh 10-month lows at 1.3811.
   
• Heightened political uncertainty in the euro area and resurgence in Greece crisis keeps EUR subdued.
   
• AUD supported after RBA held rates and talked up the Australian economic growth prospects in its monetary policy statement.
   
• Data released earlier today showed Australia’s January NAB business conditions rose to 16 vs previous 10, while NAB business confidence was up to 10 vs previous 6.
   
• Technical studies are biased lower,  we see scope for further downside. 
   

Support levels - 1.3801 (Week of Sept 1, 2014 low), 1.3678 (Week of Apr 27, 2015 low)

Resistance levels - 1.3905 (5-DMA), 1.3981 (Feb 10 high), 1.4074 (20-DMA)

TIME  TREND INDEX  OB/OS INDEX  
  
1H          Bullish                 Neutral       
4H          Bearish               Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-slumps-to-fresh-21-month-lows-at-13947-bias-lower-525856) has achieved target price.

Recommendation: Good to go short on rallies around 1.3855, SL: 1.3910, TP: 1.38/ 1.37/ 1.3675

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -59.9195(Bearish), while Hourly AUD Spot Index was at 28.743 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.