EUR/AUD’s recent recovery from a 1.4321 low ran out of tarmac against the Ichimoku cloud resistance at 1.5273. Unless the cross makes a sustained move over 1.5395 and the 40-week moving average at 1.5542, the bearish underlying from last December’s peak at 1.6827 is intact, Benjamin Wong, Strategists at DBS Bank reports.

EUR/AUD remains under the cosh 

“The cross regained and scaled a 1.5279 high, but the push back lower is clear as the cross ran into an Ichimoku cloud resistance barrier at 1.5273. Against the grain of the mid-March peak at 1.5329, this again sprouts the potential of another pseudo double top. This is signalling that EUR/AUD remains under the cosh until it regains over the next tangible resistance at 1.5395, and the 40-week moving average at 1.5542.”

“The inability to crack cloud resistance at 1.5273 is magnified by the fact that it is a calibrated 50% Fibonacci retracement of the EUR/AUD cross’ decline from 1.6225 into 1.4321 lows (incidentally at the same level of 1.5273).”