FxWirePro: EUR/AUD rejected at lows, hammer formation signals further upside

• EUR/AUD rejected at lows around 1.47 handle, edges higher to currently trade around 1.4772.
   
• The pair finds strong resistance at 20-DMA at 1.4765, decisive break above could see further upside, test of 1.4975 (channel top) then likely.
   
• 5-DMA at 1.4717 is immediate support on the downside, break below will see further drag.
   
• 100-DMA at 1.4601 is strong support on the downside, break below could see test of channel base at 1.4370.
   
• MACD is now showing a bullish crossover on signal line. Stcohs are biased higher.
   
• Eurozone Markit Manufacturing PMI misses forecasts, prints at 56.6 vs 56.8 expected in July.
   
• Focus now on eurozone flash GDP data for further direction.

Support levels - 1.4718 (5-DMA), 1.4615 (38.2% Fib retrace of 1.3626 to 1.5226 rally), 1.4609 (100-DMA)

Resistance levels - 1.48, 1.4849 (nearly converged 23.6% Fib and cloud top), 1.49, 1.4998 (June 28 high)

Recommendation: Go long on decisive close above 20-DMA at 1.4765, SL: 1.4710, TP: 1.48/ 1.4850/ 1.49.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 64.9002 (Neutral), while Hourly AUD Spot Index was at 17.9966 (Neutral) at 0845 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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