Daily Pivots: (S1) 1.5642; (P) 1.5760; (R1) 1.5831; More….
EUR/AUD’s decline extends to as low as 1.5660 so far and intraday bias remains on the downside. Break of channel support indicates acceleration and raises the chance of medium term reversal. Focus will be on 1.5621 key support. On the upside, break of 1.5774 support turned resistance is needed to be first sign of short term bottoming. Otherwise, deeper will still be in favor in case of recovery.
In the bigger picture, while there is bearish divergence condition in daily MACD, there is no clear sign of reversal yet. Current rally from 1.3624 could extend to 1.6587 key resistance (2015 high). Nonetheless, we’d expect further loss of upside momentum, and strong resistance from 1.6587 to limit upside and bring reversal. On the downside, sustained break of 1.5621 support should confirm reversal and turn outlook bearish for 1.5153 support and below.
