Technical Analysis:
- EUR/AUD extends downside after rejection at 200-DMA.
- The pair has broken below 100-DMA at 1.4515 on Tuesday's trade.
- Currently, the pair is hovering around 1.4378 after taking support by 20-DMA at 1.4374.
- Break below 20-DMA raises scope for downside. We see scope for test of trendline at 1.41 levels.
- Stochs have rolled over from overbought levels adding to downside confirmation.
- RSI is biased lower and has slipped below the 20 level. MACD is also showing a bearish crossover.
Fundamental factors:
- Mounting political tension over Europe alongside a potential banking crisis is likely to keep the EUR subdued.
Recommendation: Good to short on rallies around 1.44, SL: 1.4490, TP: 1.4350/ 1.43/ 1.4220
Support levels:
S1 - 1.4351 (50-DMA)
S2 - 1.43 (Dec 20 lows)
S3 - 1.4291 (Dec 21 low)
Resistance levels:
R1 - 1.4487 (5-DMA)
R2 - 1.45
R3 - 1.4511 (100-DMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -112.04(Highly bearish), while Hourly AUD Spot Index was at 92.3224 (Highly bullish) at 0450 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
