Daily Pivots: (S1) 1.4020; (P) 1.4102; (R1) 1.4148; More…
A temporary top is formed at 1.4183 in EUR/AUD and intraday bias is turned neutral first. Some consolidation would be seen but downside should be contained by 1.3874/4014 support zone and bring another rally. As noted before, we’re favoring the case of medium term trend reversal defending key support level at 1.3671, on bullish convergence condition in daily MACD Above 1.4183 will turn bias back to the upside for 1.4289 resistance. Sustained break there will affirm our bullish view and target 1.4721 key 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.
