Daily Pivots: (S1) 1.5879; (P) 1.5931; (R1) 1.5959; More…
EUR/AUD drops notably today but stays inside range of 1.5721/6122. Intraday bias remains neutral first and more consolidation could still be seen. On the downside, break of 1.5721 low will confirm this case and target 1.5346 support next. On the upside, though, break of 1.6122 will extend the pattern from 1.5721 with another rise.
In the bigger picture, as long as 1.5346 support holds, outlook will 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.
