Daily Pivots: (S1) 1.4714; (P) 1.4758; (R1) 1.4785; More…
EUR/AUD’s strong rise and break of 1.4813 indicates resumption of rebound from 1.4625. The development is in line with the view that pull back from 1.5226 has completed, ahead of 38.2% retracement of 1.3624 to 1.5226 at 1.4614. Intraday bias is turned back to the upside for retesting 1.5226 first. On the downside, below 1.4680 will turn bias back to the downside for 1.4625.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. Such correction should be completed at 1.3624 after defending 1.3671 key support. Rise from 1.3642 would extend to 61.8% retracement of 1.6587 to 1.3624 at 1.5455. Sustained break there will pave the way to retest 1.6587. However, sustained break of 1.4669 support will dampen this bullish view. We’ll assess the outlook later after looking at the structure and depth of the pull back.
