FxWirePro: EUR/AUD Holds 100-DMA Support, Further Weakness Only on Break Below
- EUR/AUD has taken 100-DMA support at 1.5190 and edged higher to currently trade around 1.5260 levels.
- Aussie weakness seen after poor Chinese CPI and PPI data earlier today.
- China CPI data for May came in at +2.0% y/y versus +2.2% expected and against +2.3% previous, while the factory gate prices also missed estimates.
- Poor data reinforced concerns that China is yet to come out of the persistent economic slowdown.
- Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-breaks-major-support-at-15355-on-track-to-test-100-DMA-at-15192-218110) has achieved all targets.
- We see further weakness only on break below 1.5190, test of 1.51 levels then likely.
- Next immediate support below 1.5190 is seen at 1.5160 (Feb 23rd lows & 50-DMA). On the upside resistance is seen at 1.5313 (5-DMA).
Recommendation: Go short on break below 1.5190, target 1.5160/1.51