Daily Pivots: (S1) 1.5785; (P) 1.5843; (R1) 1.5874; More….
EUR/AUD’s decline from 1.6139 resumed by taking out 1.5837 and reaches as low as 1.5774 so far. Intraday bias is back on the downside for further fall. But still, as price actions from 1.6189 are viewed as a consolidation pattern, downside should be contained above 1.5621 support to bring rebound. Above 1.5962 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.
