FxWirePro: EUR/AUD slumps to fresh 21-month lows at 1.3947, bias lower

• EUR under pressure. Heightened political uncertainty in France pushed the France-German yield spread to four-year high.
   
• AUD supported after RBA held rates and talked up the Australian economic growth prospects in its monetary policy statement.
   
• EUR/AUD suppressed, hits fresh 21-month lows at 1.3947 (May 2015 low was 1.3911), bias lower.
   
• The pair has broken below major support at 1.40, scope for test of 1.3911 (May 2015 low).

Support levels - 1.3950 (trendline), 1.3911 (May 14, 2015 low), 1.3705 (Apr 16, 2015 low)

Resistance levels - 1.40 (trendline), 1.4052 (5-DMA), 1.4141 (20-DMA)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish                 Oversold        
4H          Bearish                 Oversold        
1D          Bearish                 Oversold        
1W         Bearish                 Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-capped-below-20-DMA-good-to-go-short-on-rallies-519485) has hit all targets.

Recommendation: Book full profits. We recommend fresh shorts on break below 1.3950.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -32.7593(Neutral), while Hourly AUD Spot Index was at 48.7622 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.