Daily Pivots: (S1) 1.5298; (P) 1.5409; (R1) 1.5473; More….
EUR/AUD drops further to as low as 1.5343 as correction from 1.5770 extends. At this point, we’d still expect downside to be contained above 1.5226 key support to bring rally resumption. Above 1.5482 minor resistance will turn bias to the upside for 1.5770. Break there will resume the medium term rise and target 61.8% projection of 1.3624 to 1.5226 from 1.4949 at 1.5939 first. However, sustained break of 1.5226 will carry larger bearish implications and turn outlook bearish.
In the bigger picture, we’re holding on to the view that corrective decline from 1.6587 medium term top (2015 high) has completed at 1.3624. Rise from 1.3624 is expected to extend to retest 1.6587. We’ll hold on to this bullish view as long as 1.5226 resistance turned support holds. Firm break of 1.6587 will resume long term rise from 1.1602 (2012 low).
