EUR/AUD - EUR/AUD Enters a Bearish Territory! - 10/26/2016 (GMT)

The Australian dollar set-off with a 200-pip rally against the euro after it break below the key support level at 1.4400, and remained bearish below the weekly 200-SMA. Technically, the risk remains towards the downside, given that the price is settling below the psychological level at 1.4400. Therefore, we should see the AUD moving further down under the 1.4400 major level, with the weekly 200-SMA now acting as the nearest resistance. Short-term technical indicators are still unable to provide any clear sense of direction, whereas the longer timeframe ones still suggest the bearish momentum is to prevail. The next level to watch over the short-term will be the 1.3960 barrier, where we will expect a pullback from there, before going more south, towards 1.3650.