Daily Pivots: (S1) 1.5367; (P) 1.5532; (R1) 1.5635; More….
As noted before, the corrective rebound from 1.5271 should have completed at 1.5690 already. Deeper fall is expected in EUR/AUD to retest 1.5271 first. Break will resume whole decline from 1.6189 to 1.5153 key support. In case of another rise, we’d continue to expect strong resistance from 1.5773 support turned resistance to limit upside.
In the bigger picture, rally from 1.3624 (2017 low) should have completed at 1.6189 already, ahead of 1.6587 key resistance (2015 high). 1.6189 is seen as a medium term top. Deeper fall would be seen to 38.2% retracement of 1.3624 to 1.6189 at 1.5209 first. Decisive break there will pave the way to 61.8% retracement at 1.4604. In that case, we’ll look for bottoming again below 1.4604. On the upside, firm break of 1.5773 support turned resistance is needed to indicate completion of the fall from 1.6189. Otherwise, further decline is expected in medium term, even in case of strong rebound.
