FxWirePro: EUR/AUD retraces break above major trendline post ECB’s dovish taper announcement, intraday bias neutral

• EUR/AUD retraces break above major trendline post ECB’s dovish taper announcement.
   
• The pair edged lower from 16-month highs at 1.5392 and is currently trading at 1.5213 levels.
   
• The EUR fell sharply overnight, following the ECB’s dovish tapering announcement.
   
• The ECB reduced asset purchase program from EUR 60bn to EUR 30bn as expected and the duration of the program was extended for another nine months.
   
• Draghi also issued a dovish statement, said the economic outlook has improved considerably, but there is still no commitment to an end date for net-asset purchases.
   
• The ECB maintained that the QE program can still be extended in size/or duration if necessary.
   
• The pair now finds support at 5-DMA at 1.5185, break below will see weakness. Scope then for test of 20-DMA at 1.5086.

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-edges-lower-from-15-month-highs-at-152415-bias-higher-stay-long-968781) has hit TP1.

Recommendation: Wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -25.1165 (Neutral), while Hourly AUD Spot Index was at -66.5519 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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