FxWirePro: EUR/AUD trades rangebound above 50-DMA at 1.5338, break below to see further weakness

• EUR/AUD pauses downside after 4 successive days of losses, bias still lower.
   
• The pair is trading in a narrow range above stiff support at 50-DMA at 1.5338.
   
• Technical indicators are biased lower, momentum highly bearish, with bearish divergence adding to downside bias.
   
• Break below 50-DMA will accentuate weakness, raising scope for test of 38.2% Fib retracement at 1.5254 levels.
   
• On the flipside, break above 20-DMA at 1.5571 could invalidate the bearish bias.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-AUD-breaks-below-20-DMA-bias-lower-stay-short-1055731) has hit TP1/2 and is approaching final target.

Recommendation: Book partial profits, trail stop loss to 1.5450, hold for 1.5340. Watch out for break below 50-DMA for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -87.4542 (Bearish), while Hourly AUD Spot Index was at 91.6807 (Bullish) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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