FxWirePro: EUR/AUD hovers around 38.2% Fib, break below needed for further downside

• EUR/AUD trades an extremely narrow range, extends downside for 4th successive session.
   
• The pair is holding above 38.2% Fib retrace of 1.3626 to 1.5226 rally at 1.4615.
   
• Breaks below to see further downside, test of 200-DMA at 1.4387 then likely.
   
• The pair is trading with a major bearish bias, we see scope for further downside.
   
• Technical indicators are biased lower and MACD has shown a bearish crossover on signal line.
   
• Next major support on the downside below 38.2% Fib is seen at cloud base at 1.4583.
   
• On the flipside, we see reversal in trend only on break above 20-DMA at 1.4849.
   

Support levels - 1.4626 (June 20 lows), 1.4615 (38.2% Fib retrace of 1.3626 to 1.5226 rally), 1.4583 (cloud base)

Resistance levels - 1.4781 (5-DMA), 1.48, 1.4849 (20-DMA & 23.6% Fib), 1.4889 (50-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-breaks-below-50-DMA-bias-lower-good-to-go-short-on-rallies-803996) is progressing well.

Recommendation: Stay short for targets.

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