Daily Pivots: (S1) 1.4537; (P) 1.4612; (R1) 1.4736; More…
EUR/AUD’s rally resumed after brief retreat and reaches as high as 1.4739 so far, breaching 1.4721 key resistance. Intraday bias remains on the upside for the moment. We’d holding on to the view of trend reversal after defending 1.3671 key support. Sustained break of 1.4721 will confirm our bullish view. In such case, the next target is 1.5455 medium term fibonacci level. On the downside, break of 1.4442 support is needed to indicate short term topping. Otherwise, outlook will remains bullish in case of retreat.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. Such correction could be completed after defending 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.
