Daily Pivots: (S1) 1.6564; (P) 1.6638; (R1) 1.6681; More…
While the pull back from 1.6827 is deep, EUR/AUD is holding above 1.6485 support so far. Intraday bias remains neutral first and another rise is expected. Current rebound is seen as correcting whole fall form 1.9799. Break of 1.6827 will target 38.2% retracement of 1.9799 to 1.6033 at 1.7472. However, break of 1.6485 support will argue that the rebound might be completed and turn focus to 1.6337 support for confirmation.
In the bigger picture, EUR/AUD is now back above 55 day EMA (now at 1.6463) with current rebound. The development argues that price actions form 1.9799 might be developing into a sideway pattern only. That is, medium term outlook is just neutral, and up trend from 1.1602 (2012 low) could resume at a later stage. On the downside, though, sustained trading below 55 week EMA would revive medium term bearishness for 61.8% retracement of 1.1602 to 1.9799 at 1.4733.
