Daily Pivots: (S1) 1.4961; (P) 1.5034; (R1) 1.5095; More…
The break of 1.4927 support in EUR/AUD indicates short term topping at 1.5226, on bearish divergence condition in 4 hour MACD. Intraday bias is turned to the downside for deeper pull back to 38.2% retracement of 1.3980 to 1.5226 at 1.4750. At this point, we’d expect strong support from 1.4669 to contain downside and bring rebound. Larger rise from 1.3642 is expected to resume later after the pull back completes.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. Such correction should be completed at 1.3624 after defending 1.3671 key support. Rise from 1.3642 is now expected to target 61.8% retracement of 1.6587 to 1.3624 at 1.5455. Sustained break there will pave the way to retest 1.6587. In any case, outlook will now stay cautiously bullish as long as 1.4669 support holds.
