Daily Pivots: (S1) 1.6292; (P) 1.6332; (R1) 1.6364; More…
EUR/AUD retreated after hitting 1.6420 and intraday bias is turned neutral. We’re viewing rebound from 1.6122 as a rising leg in the consolidation pattern from 1.6033. Above 1.6420 will target 1.6827 resistance. On the downside, though, break of 1.6122 will bring retest of 1.6033 low.
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.
