FxWirePro: EUR/AUD breaks below 38.2% Fib, bias lower, scope for test of 200-DMA, stay short

• EUR/AUD extends downside after brief pause on Monday's trade.
   
• The pair has broken below 38.2% Fib retrace of 1.3626 to 1.5226 rally at 1.4615 and daily cloud base.
   
• Downside is now hovering at 100-DMA support at 1.4539, we see scope for test of 200-DMA at 1.4387 on break below.
   
• Technical indicators are heavily bearish on daily charts. Bias lower even on the weeklies.
   
• Bearish invalidation and reversal in trend only on break above 20-DMA at 1.4846.
   

Support levels - 1.4539 (100-DMA), 1.45, 1.4426 (50% Fib retrace of 1.3626 to 1.5226 rally), 1.4386 (200-DMA)

Resistance levels - 1.4583 (cloud base), 1.4615 (38.2% Fib), 1.47

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-breaks-below-50-DMA-bias-lower-good-to-go-short-on-rallies-803996) has hit TP1&2.

Recommendation: Lower trailing stop to 1.4775, stay short for 1.4525/ 1.45/ 1.4425/ 1.4390.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 68.1476 (Bearish), while Hourly AUD Spot Index was at 42.837 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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