Daily Pivots: (S1) 1.4727; (P) 1.4807; (R1) 1.4860; More…
EUR/AUD’s pull back from 1.5226 extended lower and broke 38.2% retracement of 1.3980 to 1.5226 at 1.4750. But at this point, we’d still expect strong support from 1.4669, close to 55 day EMA at 1.4685, to contain downside and bring rebound. Above 1.4894 minor resistance will turn bias back to the upside for retesting 1.5226 high. However, firm break of 1.4669 will argue that rise from 1.3642 is completed and bring deeper pull back.
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. Break of 1.4669 will dampen the bullish view and would at least bring deeper fall back to 55 week EMA (now at 1.4539).
