Daily Pivots: (S1) 1.5695; (P) 1.5797; (R1) 1.5864; More….
EUR/AUD rebounds strongly today but stays below 1.6038 resistance. Intraday bias remains neutral first. Further decline is expected with 1.6038 resistance intact. On the downside, break of 1.5721 will extend the fall from 1.6765 to 1.5346 key support. But break of 1.6038 will indicate completion of the fall and turn bias back to the upside.
In the bigger picture, the failure to sustain above 1.6587 key resistance (2015 high) argues that up trend from 1.1602 (2012 low) is not ready to resume yet. But still, as long as 1.5346 support holds, outlook will remain bullish. 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.
