Daily Pivots: (S1) 1.3691; (P) 1.3752; (R1) 1.3785; More…
EUR/AUD’s decline resumed by taking out 1.3722 and intraday bias is back on the downside. Bullish convergence condition is seen in 4 hour MACD. Also, price actions from 1.6587 are seen as a corrective move. Hence, we’d expect strong support from 1.3671 key level to contain downside and bring rebound. Break of 1.3900 resistance will indicate near term reversal and turn bias back to the upside for 1.4025 resistance and above.
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.
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