EUR/AUD’s decline from 1.5945 continued last week and outlook is unchanged. Initial bias stays on the downside this week for 1.5591 low first. Firm break there will resume the down trend from 1.9799. Next target is 61.8% projection of 1.6409 to 1.5591 from 1.5945 at 1.5439. On the upside, above 1.5706 minor resistance will delay the bearish case, and extend the consolidation from 1.5591 with another rise.
In the bigger picture, price actions from 1.9799 are developing into a deep correction, to long term up trend from 1.1602 (2012 low). Deeper fall would be seen to 61.8% retracement of 1.1602 to 1.9799 at 1.4733. Medium term outlook will remain bearish as long as 1.6827 resistance holds, even in case of strong rebound.
In the longer term picture rise from 1.1602 (2012 low) could have already completed with three waves up to 1.9799. The development suggests that long term range trading is extending with another medium term down leg. Sustained trading below 55 month EMA (now at 1.5838) now further affirms this case could bring deeper decline to 1.1602/3624 support zone.
