FxWirePro: EUR/AUD hovers around multi-month lows, bias lower, stay short

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.