Daily Pivots: (S1) 1.6178; (P) 1.6228; (R1) 1.6293; More…
Range trading continues in EUR/AUD and intraday bias remains neutral first. Further decline is expected with 1.6343 resistance intact. Break of 1.6122 will target 1.6033 low first. Decisive break there will resume larger down trend from 1.9799. On the upside, break of 1.6343 resistance will firstly indicate short term bottoming. Also, sideway pattern from 1.6033 should have then started another rising leg.
In the bigger picture, price action from 1.9799 are seen as developing into a corrective pattern. The question is whether it’s a sideway pattern or a deep correction. On the downside, sustained break of 1.6033 will suggest it’s the latter case and target 61.8% retracement of 1.1602 (2012 low) to 1.9799 at 1.4733. On the upside, break of 1.6827 resistance will favor the former case and bring stronger rebound.
