Daily Pivots: (S1) 1.3804; (P) 1.3892; (R1) 1.3945; More…
Intraday bias in EUR/AUD remains on the downside today. Current decline is part of the medium term fall from 1.6587 and should target 1.3671 key support level. At this point, we’d still expect strong support around 1.3671 to bring rebound. On the upside, break of 1.4038 resistance will indicate short term bottoming and turn focus back to 1.4289 resistance.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. Deeper fall could be seen but, we’d expect strong support above 1.3671 to contain downside and bring rebound. Up trend from 1.1602 should not be finished and will resume later. Break of 1.4721 resistance will indicate completion of such correction and outlook bullish for retesting 1.6587 high. However, sustained break of 1.3671 will invalidate our bullish view and would turn focus back to 1.1602 long term bottom.
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