FxWirePro: EUR/AUD breaks below 50-DMA, bias lower, good to go short on rallies

• EUR/AUD trades with a major bearish bias, we see scope for further downside.
   
• The pair has broken below 50-DMA and price action has dipped into daily cloud.
   
• Technical indicators are biased lower and MACD has shown a bearish crossover on signal line.
   
• Next major support on the downside is seen at cloud base at 1.4583, break below could see drag upto 200-DMA at 1.4388.
   
• On the flipside, we see reversal in trend only on break above daily cloud.
   

Support levels - 1.4626 (June 20 lows), 1.4615 (38.2% Fib retrace of 1.3626 to 1.5226 rally), 1.4583 (cloud base), 1.4523 (100-DMA)

Resistance levels - 1.48, 1.4854 (20-DMA), 1.4893 (50-DMA), 1.5025 (July 12 high)

Recommendation: Good to go short on rallies around 1.4730, SL: 1.4850, TP: 1.4615/ 1.4585/ 1.4525

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -26.9677 (Neutral), while Hourly AUD Spot Index was at 113.289 (Bullish) at 1020 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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