Daily Pivots: (S1) 1.3878; (P) 1.3921; (R1) 1.3966; More…
Intraday bias in EUR/AUD remains neutral for the moment for consolidation below 1.4014 temporary top. At this point, we’re still preferring the case of short term bottoming at 1.3624, on bullish convergence condition in 4 hour MACD. Hence, another rise is expected and above 1.4014 will target 1.4289 resistance. Break there will confirm trend reversal. However, below 1.3835 minor support will dampen our bullish view and turn bias back to the downside for 1.3624 low.
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.
