Daily Pivots: (S1) 1.4997; (P) 1.5027; (R1) 1.5068; More….
EUR/AUD is staying in range of 1.4945/5101 and intraday bias remains neutral. Deeper decline is still mildly in favor. Break of 1.4945 will affirm the case that fall from 1.5241 is the third leg of consolidation pattern from 1.5226. And, Further break of 1.4791 will target 1.4421 support cluster support (50% retracement of 1.3624 to 1.5226 at 1.4425). We’d expect strong support from there to bring rebound. On the upside, though, above 1.5101 will turn focus back to 1.5241 instead.
In the bigger picture, we’re holding on to the view that corrective decline from 1.6587 medium term top has completed at 1.3624. Rise from 1.3624 is expected to extend to retest 1.6587. The corrective structure of the price actions from 1.5226 is affirming this view. Sustained trading above 1.5226 will target a test on 1.6587 key resistance. However, break of 1.4421 support will dampen our view and would drag EUR/AUD lower to retest key support zone around 1.3624.
