Daily Pivots: (S1) 1.5827; (P) 1.5871; (R1) 1.5903; More….
With a temporary low in place at 1.5837, intraday bias in EUR/AUD is turned neutral first. No change in the view that price actions from 1.6189 are forming a corrective pattern. Below 1.5837 will target 1.5773 and below. But we’d expect strong support above 1.5621 to complete the pattern and bring rebound. On the upside, above 1.5966 support turned resistance will turn bias to the upside for 1.6139 resistance.
In the bigger picture, while there is bearish divergence condition in daily MACD, there is no clear sign of reversal yet. Current rally from 1.3624 could extend to 1.6587 key resistance (2015 high). Nonetheless, we’d expect further loss of upside momentum, and strong resistance from 1.6587 to limit upside and bring reversal. On the downside, sustained break of 1.5621 support should confirm reversal and turn outlook bearish for 1.5153 support and below.
