- EUR/AUD holds support at 20-DMA at 1.5920, break below will accentuate weakness.
- Technical indicators are biased lower. RSI and Stochs have rolled over from overbought levels.
- MACD is showing a bearish crossover on signal line which adds to bearish bias.
- Price action was rejected at channel top and has slipped below 5-DMA support.
- Further we evidence a bearish divergence on RSI and Stochs which supports downside.
- Weak eurozone manufacturing PMI keeps pressure on the euro. Focus now on eurozone flash inflation reading for March.
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-AUD-Trade-Idea-1232558) has hit TP1.
Recommendation: Bias lower. Watch out for break below 20-DMA for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -13.7782 (Neutral), while Hourly AUD Spot Index was at 14.3006 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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