Daily Pivots: (S1) 1.3921; (P) 1.3965; (R1) 1.4047; More…
Breach of 1.4014 temporary top suggests that pull back has completed at 1.3874, ahead of 1.3835 support. Intraday bias in EUR/AUD is turned back to the upside for 1.4289 resistance next. Current development, with a short term bottom formed at 1.3624, is taking as an early sign of larger trend reversal after defending 1.3671 key support. Break of 1.4289 will confirm this case and target 1.4721 resistance next. However, break of 1.3874 minor support will dampen our bullish view and turn bias back to the downside for 1.3624 instead.
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.
