- EUR/AUD extending declines after rejection at major trendline resistance at 1.5775.
- Price action has dipped into daily cloud, technical indicators support further weakness, bias lower.
- On weekly charts, Stochs have rolled over from overbought levels and RSI is biased lower.
- We evidence bearish divergence on RSI on daily charts which adds to bearish bias.
- Immediate support on the downside lies at 100-DMA at 1.5182. Breach there could see further weakness.
- On the upside, we see bearish invalidation on breakout above 20-DMA at 1.5473.
Support levels - 1.5265 (23.6% Fib retrace of 1.3626 to 0.5771 rally), 1.5193 (20W SMA), 1.5182 (100-DMA)
Resistance levels - 1.5358 (cloud top), 1.5391 (50-DMA), 1.5471 (nearly converged 20-DMA and 5W SMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -40.6403 (Neutral), while Hourly AUD Spot Index was at 11.3189 (Neutral) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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