Daily Pivots: (S1) 1.5961; (P) 1.5993; (R1) 1.6046; More…
EUR/AUD rebounded strongly after drawing support from 4 hour 55 EMA, but stays below 1.6064 temporary top. Intraday bias remains neutral first. Further rise is still expected as long as 1.5806 minor support holds. We’d continue to favor the bullish case that correction from 1.6765 has completed with three waves down to 1.5683. On the upside, above 1.6064 will turn bias back to the upside for 1.6122. Decisive break of 1.6122 will confirm this bullish view and target retesting 1.6765 high. However, break of 1.5806 support will argue that fall from 1.6765 is resuming and turn bias back to the downside for 1.5683 low for confirmation.
In the bigger picture, as long as 1.5346 support holds, outlook will still remain bullish. Uptrend from 1.1602 (2012 low) is expected to resume sooner or later. Break of 1.6765 will target 61.8% retracement of 2.1127 (2008 high) to 1.1602 at 1.7488 next. However, firm break of 1.5346 key support will indicate trend reversal, with bearish divergence condition in weekly MACD, and turn outlook bearish.
