FxWirePro: EUR/AUD resumes downside in slopping channel, break below 200-DMA could accentuate weakness

• EUR/AUD upside from 4-year lows at 1.3626 (Feb 2017) has likely run out of momentum.
• The pair has entered trade in a slopping channel and is extending grind lower.
• The pair has turned lower following a bearish RSI divergence, RSI is now converging with price action.
• MACD is also supporting trend lower, momentum with the bears.
• Downside finds strong support at 200-DMA at 1.4391, break below will see further drag.

Support levels - 1.4605 (cloud base), 1.4588 (100-DMA), 1.45, 1.4391 (200-DMA and channel base)

Resistance levels - 1.4615 (38.2% Fib), 1.4676 (5-DMA), 1.47

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-hovers-around-100-DMA-at-14548-bias-lower-stay-short-809921) is progressing well.

Recommendation: Stay short for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 71.58 (Neutral), while Hourly AUD Spot Index was at 48.4027 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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