Daily Pivots: (S1) 1.4637; (P) 1.4705; (R1) 1.4801; More…
A temporary top is in place at 1.4777 in EUR/AUD and intraday bias is turned neutral first. We’d holding on to the view that correction from 1.5226 could have completed with three waves down to 1.4421 already. There another rally is expected in the cross. Break of 1.4777 will turn bias to the upside for 1.5073 resistance first. Break there will indicate resumption of whole rise from 1.3624. However, break of 1.4221 will invalidate our view and extend the decline from 1.5226.
In the bigger picture, we’re holding on to the view that corrective decline from 1.6587 medium term has completed at 1.3624. Rise from 1.3624 is expected to resume to retest 1.6587. The corrective structure of the fall from 1.5226 is affirming this view. Above 1.5226 will target a test on 1.6587 key resistance. However, further downside acceleration will dampen our view and would drag EUR/AUD lower to retest key support zone around 1.3624.
