- EUR/AUD has held above 38.2% Fib support at 1.4615, weakness only on break below.
- Daily ichi cloud also offers strong support on the downside.
- The pair is extending rebound for 2nd consecutive day, intraday bias neutral.
- Price action hovering around 50-DMA at 1.4730, close above could invalidate bearish bias.
- We see bearish divergence from price action on RSI and Stochs on the daily chart.
- MACD shows continuation of trend lower. Next bear target on break below 38.2% Fib lies at 200-DMA 1.4377.
- On close above 50-DMA, pair could then rebound till 20-DMA at 1.4933.
Support levels - 1.4615 (38.2% Fib), 1.4573 (cloud top), 1.4443 (May 2 low), 1.4377 (200-DMA)
Resistance levels - 1.4702 (5-DMA), 1.4718 (50-DMA), 1.4849 (23.6% Fib), 1.4919 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-breaks-below-50-DMA-eyes-200-DMA-at-14377-stay-short-764501) has been stopped out.
Recommendation: Wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 68.1476 (Bearish), while Hourly AUD Spot Index was at 42.837 (Neutral) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.


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