Fundamental Factors:
- ECB kept its main rates unchanged and maintained the bond-buying program at Thursday's meeting.
- The central bank maintained its dovish stance despite an improving growth and inflation outlook.
- The single currency slumped post-decision, taking EUR/AUD to new 8-month lows at 1.40276.
Technical Analysis:
- EUR/AUD trades with a major bearish bias.
- The pair is hovering around major trendline resistance at 1.41 levels.
- Downside finds little support till 1.38 (Sept 1 week low).
- Technicals are biased lower on weekly and monthly charts.
- Upticks should be used as buying opportunities.
Major support levels - 1.4050 (Nov 4, 2013 week low), 1.3965 (Jan 19, 2015 week low), 1.38 (Sept 2014 low)
Major resistance levels - 1.4137 (5-DMA), 1.42, 1.4317 (50-DMA), 1.4343 (20-DMA)
Recommendation: We expect some retrace from current levels. Will wait for upticks to enter near-term shorts.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 45.6044(Neutral), while Hourly AUD Spot Index was at 38.7821 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.


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