ECB’s Weidmann says 'ECB not at point where it can end expansionary policy.'
EUR/AUD capped below 5-DMA as Euro extends weakness.
Heightened political uncertainty in the euro area keeps euro subdued, while AUD remains supported after RBA.
The pair has broken below major support at 1.40, scope for test of 1.3911 (May 2015 low)
Support levels - 1.3945 (trendline), 1.3911 (May 14, 2015 low), 1.3705 (Apr 16, 2015 low)
Resistance levels - 1.40 (trendline), 1.4018 (5-DMA), 1.4131 (20-DMA)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bearish Neutral
1D Bearish Oversold
1W Bearish Neutral
Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-slumps-to-fresh-21-month-lows-at-13947-bias-lower-525856).
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -112.865(Highly Bearish), while Hourly AUD Spot Index was at -17.6778 (Neutral) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
