FxWirePro: EUR/AUD rejected at major trendline resistance, slips below 100-DMA, good to short break below 1.4030

• EUR/AUD is extending downside after rejection at major trendline resistance at 1.4220.
   
• Aussie buoyed by stellar Australia employment and upbeat China trade data.
   
• The pair has slipped below 100-DMA and intraday bias remains bearish.
   
• The pair is trading well below 200-DMA and bearish RSI divergence on daily charts adds to bearish bias.
   
• We see strong support by major trendline at 1.4030, break below is likely to see further drag.
   
• Below 1.4030 we see next major support at 50-DMA at 1.3972. Violation there could see test of 1.3939 (Mar 31 low). 
   
• On the flipside, we see reversal on trend only on break above trendline at 1.4215.

Support levels - 1.4030 (trendline), 1.3972 (50-DMA), 1.3939 (Mar 31 low)

Resistance levels - 1.4077 (20-DMA), 1.4120 (5-DMA), 1.4127 (100-DMA), 1.4215 (trendline)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Oversold       
4H          Bearish               Neutral       
1D          Neutral                Neutral        
1W         Neutral                Neutral      

Recommendation: Good to go short on break below 1.4030, SL: 1.4080, TP: 1.3975/ 1.3940/ 1.39/ 1.3875

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -16.359 (Neutral), while Hourly AUD Spot Index was at 68.7978 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.