FxWirePro: EUR/AUD breaks below 20-DMA, good to go short on rallies

• EUR/AUD is extending downside after being rejected at major trendline resistance at 1.5225.
   
• The pair has broken below 20-DMA and we see scope for further downside.
   
• ECB policy decision will remain the main market driver for the Euro today, dovish tilt expected in Draghi's presser.
   
• Euro took a beating yesterday after Bloomberg headlines cited that the ECB is said to cut inflation forecasts through 2019.
   
• Aussie erases dismal trade data led downside as upbeat Chinese trade data extends support.
   
• Technical indicators are biased lower, upside was rejected at session highs at 1.4949.
   
• 5-DMA at 1.50 is stiff resistance, we see bearish invalidation only on close above.

Support levels - 1.4849 (23.6% Fibo 1.3626 to 1.5226 rise), 1.4721 (weekly 200-SMA), 1.4670 (May 12 low)

Resistance levels - 1.50 (converged 5 and 20-DMA), 1.5210 (trendline), 1.5226 (June 1 high)

Recommendation: Good to go short on rallies around 1.50, SL: 1.5220, TP: 1.4850/ 1.4720/ 1.4670

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -113.085 (Bearish), while Hourly AUD Spot Index was at 115.633 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.