FxWirePro: EUR/AUD recovers from new 8-month lows at 1.40276, bias lower

Fundamental Factors:

• ECB kept its main rates unchanged and maintained the bond-buying program at Thursday's meeting.
• The central bank maintained its dovish stance despite an improving growth and inflation outlook.
• The single currency slumped post-decision, taking EUR/AUD to new 8-month lows at 1.40276.

Technical Analysis:

• EUR/AUD trades with a major bearish bias. 
• The pair is hovering around major trendline resistance at 1.41 levels.
• Downside finds little support till 1.38 (Sept 1 week low).
• Technicals are biased lower on weekly and monthly charts.
• Upticks should be used as buying opportunities.

Major support levels - 1.4050 (Nov 4, 2013 week low), 1.3965 (Jan 19, 2015 week low), 1.38 (Sept 2014 low)

Major resistance levels - 1.4137 (5-DMA), 1.42, 1.4317 (50-DMA), 1.4343 (20-DMA)

Recommendation: We expect some retrace from current levels. Will wait for upticks to enter near-term shorts.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 45.6044(Neutral), while Hourly AUD Spot Index was at 38.7821 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.