Daily Pivots: (S1) 1.5550; (P) 1.5591; (R1) 1.5630; More…
Immediate focus is now on 1.5743 resistance with today’s rally in EUR/AUD. Firm break there, will have 55 day EMA taken out too, would argue that whole decline from 1.6434 has completed at 1.5354 already. Intraday bias will be back on the upside for 1.5907 support turned resistance first. On the downside, though, break of 1.5446 support will resume the fall from 1.6434, through 1.5354, to retest 1.5250 low.
In the bigger picture, the down trend from 1.9799 (2020 high) is in progress. Firm break of 1.5250 low will confirm resumption and target 61.8% retracement of 1.1602 (2012 low) to 1.9799 at 1.4733. Sustained break there could bring more downside acceleration to 61.8% projection of 1.9799 to 1.5250 from 1.6434 at 1.3623. In any case, break of 1.6434 resistance is needed to signal medium term bottoming, or outlook will stay bearish.
