Daily Pivots: (S1) 1.3773; (P) 1.3833; (R1) 1.3935; More…
The break of 1.3900 resistance suggests that a short term bottom is in place at 1.3642 on bullish convergence condition in 4 hour MACD. Also, this is taken as an early sign of trend reversal as EUR/AUD defended 1.3671 key support level. Intraday bias is turned back to the upside for 1.4289 resistance next.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. We’d expect strong support from 1.3671 key level to contain downside and bring rebound. Up trend from 1.1602 should not be finished and will resume later. Break of 1.4721 resistance will indicate completion of such correction and turn outlook bullish for retesting 1.6587 high. However, sustained break of 1.3671 will invalidate our bullish view and would turn focus back to 1.1602 long term bottom.
