Daily Pivots: (S1) 1.3934; (P) 1.3986; (R1) 1.4071; More…
EUR/AUD is holding on to 1.3874 minor support and recovered. Intraday bias remains neutral for the moment. At this point, we’re still 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. However, break of 1.3874 will dampen our view and turn bias 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.
