Daily Pivots: (S1) 1.6160; (P) 1.6255; (R1) 1.6331; More…
EUR/AUD’s deeper than expected fall argues that rebound from 1.6122 has completed much earlier than expected at 1.6420. But downside is contained above 1.6122 and intraday bias stays neutral first. On the downside, break of 1.6122 will bring retest of 1.6033 low. On the upside, break of 1.6420 will continue to extend consolidation from 1.0633 with another rise towards 1.6827 resistance.
In the bigger picture, price action from 1.9799 are seen as developing into a corrective pattern. The question is whether it’s a sideway pattern or a deep correction. On the downside, sustained break of 1.6033 will suggest it’s the latter case and target 61.8% retracement of 1.1602 (2012 low) to 1.9799 at 1.4733. On the upside, break of 1.6827 resistance will favor the former case and bring stronger rebound.
