- EUR/AUD has edged higher from 8-week lows at 1.5217, we see Doji formation on daily charts.
- The pair is trading in a narrow range and recovery attempts in the pair have been capped at 5-DMA at 1.5283.
- Technical studies are biased lower. Stochs and RSI are showing bearish momentum.
- ADX has edged above 25 and is rising with bearish DMI dominance.
- The pair has broken major trendline support at 1.5315 and break below 100-DMA will accentuate weakness.
- Violation at 100-DMA at 1.5215 to see next major support at 200-DMA at 1.4977.
- On the flipside, breakout at 20-DMA at 1.5357 will invalidate the bearish bias.
Support levels - 1.5215 (100-DMA), 1.4977 (200-DMA), 1.48 (Sept 20 lows)
Resistance levels - 1.5283 (5-DMA), 1.5357 (20-DMA), 1.5431 (Jan 3 high)
Recommendation: Good to go short on break below 100-DMA, SL: 1.5370, TP: 1.51/ 1.5080/ 1.4950.
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