FxWirePro: EUR/AUD hovers around 100-DMA at 1.4548, bias lower, stay short

• EUR/AUD has broken below daily Ichi cloud, intraday bias lower.
   
• The pair finds strong support at 100-DMA at 1.4548, 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 1.4837.
   
• Focus now on ECB rate decision for further impetus. Disappointment could weigh on the euro.
   
• Market expectations of some announcement regarding the ongoing QE programme have been bolstering the pair’s rally in past weeks.
   

Support levels - 1.4548 (100-DMA), 1.45, 1.4426 (50% Fib retrace of 1.3626 to 1.5226 rally), 1.4387 (200-DMA)

Resistance levels - 1.4615 (38.2% Fib), 1.4651 (5-DMA), 1.47

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-breaks-below-382-Fib-bias-lower-scope-for-test-of-200-DMA-stay-short-807370) has hit TP1.

Recommendation: Watch out for break below 100-DMA, target 1.45/ 1.4425/ 1.4390.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 19.1246 (Bearish), while Hourly AUD Spot Index was at 171.207 (Bullish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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