Daily Pivots: (S1) 1.4079; (P) 1.4128; (R1) 1.4160; More…
Intraday bias in EUR/AUD remains neutral for the moment. As it is still holding above 1.3872 support, we’re mildly favoring the case of trend reversal after defending key support level at 1.3671. On the upside, break of 1.4309 will extend the rebound from 1.3624 to 1.4721 key resistance level next. Decisive break of 1.4721 should confirm larger trend reversal. However, firm break of 1.3872 support will dampen our bullish view. In such case, intraday bias will be turned back to the downside for 1.3624 low instead.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. Such correction could be completed after testing 1.3671 key support. Break of 1.4721 cluster resistance (38.2% retracement of 1.6587 to 1.3624 at 1.4756) should confirm this case and target 61.8% retracement at 1.5455 and above. Overall, we’d expect the up trend from 1.1602 to resume later. However, sustained break of 1.3671 will invalidate our bullish view and would turn extend the fall from 1.6587 towards 1.1602 long term bottom.
