- EUR/AUD is trading a narrow range in the Asian session, made a day's high at 1.4011 and low of 1.3961.
- Robust Australia retail sales data released earlier today likely supporting the Aussie.
- Australia’s January retail sales m/m increased to 0.4 % (forecast 0.4 %) vs previous -0.1 %.
- The pair has shown a decisive breakout above major trendline resistance at 1.3880.
- Bullish RSI divergence and positively bias on other technical indicators support upside in the pair.
- We see scope for test of 50-DMA at 1.4094. Bullish invalidation only below 1.3875 (5-DMA).
Support levels - 1.3884 (23.6% Fib retrace of 1.4719 to 1.3626 fall), 1.3874 (5-DMA), 1.3840 (20-DMA)
Resistance levels - 1.4044 (38.2% Fib),1.4094 (50-DMA), 1.4173 (50% Fib)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bullish Rolled over from o/b
1D Bullish Neutral
1W Bearish Neutral
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-breaks-major-trendline-resistance-at-13860-good-to-go-long-on-dips-571460) has hit TP1&2.
Recommendation: Book partial profits at highs, raise trailing stops to 1.3875, stay long for 1.4040/ 1.4094.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 105.016(Highly bullish), while Hourly AUD Spot Index was at -31.3834 (Neutral) at 0650 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
