FxWirePro: EUR/AUD eyes 50-DMA at 1.5334, bias lower, stay short

• EUR/AUD extends break below 20-DMA, continues bear run for 4th successive session.
   
• The pair has slipped below 23.6% Fib retracement of 1.4417 to 1.5771 rally at 1.5451.
   
• Technical indicators are biased lower, momentum highly bearish. We note bearish 5-DMA crossover on 20-DMA.
   
• Bearish divergence on RSI and Stochs adds to the bearish bias. We see scope for further downside.
   
• Next bear target lies at 50-DMA at 1.5334, further weakness only on break below.
   
• Immediate resistance lies at 5-DMA at 1.5551. We see bearish invalidation on close above 20-DMA at 1.5586.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-AUD-breaks-below-20-DMA-bias-lower-stay-short-1055731) has hit TP1.

Recommendation: Bias lower, stay short for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 1.78929 (Neutral), while Hourly AUD Spot Index was at 45.1884 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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