Daily Pivots: (S1) 1.3775; (P) 1.3818; (R1) 1.3841; More…
EUR/AUD is staying in range above 1.3722 and intraday bias remains neutral for the moment. We’re holding on to the view that price actions from 1.6587 are corrective in nature. Thus, we’d expect strong support from 1.3671 key level to contain downside and bring rebound. Decisive break of 1.4025 support turned resistance will indicate near term reversal. In this case, intraday bias will be turned back to the upside for 1.4289 resistance first.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. We’d expect strong support from 1.3671 key level 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 turn 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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