Daily Pivots: (S1) 1.4061; (P) 1.4134; (R1) 1.4263; More…
EUR/AUD’s strong rise and break of 1.4215 resistance suggests that whole rebound from 1.3624 is resuming. Intraday bias is back on the upside fort 1.4039 resistance first. Break will target 1.4721 key resistance next. As noted before, we’re favoring the case that larger fall from 1.6587 is completed at 1.3624, after defending 1.3671 key support. And the trend is reversing. Decisive break of 1.4721 should confirm our view. On the downside, however, break of 1.3980 support will dampen this view and turn bias back to the downside for retesting 1.3624 low.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. Such correction could be completed after testing 1.3671 key support. Break of 1.4721 cluster resistance (38.2% retracement of 1.6587 to 1.3624 at 1.4756) should confirm this case and target 61.8% retracement at 1.5455 and above. Overall, we’d expect the up trend from 1.1602 to resume later. However, sustained break of 1.3671 will invalidate our bullish view and would turn extend the fall from 1.6587 towards 1.1602 long term bottom.
