EUR/AUD’s rise from 1.4281 resumed last week and hit as high as 1.5916. Initial bias remains on the upside this week for 61.8% projection of 1.4281 to 1.5704 from 1.5271 at 1.6150. On the downside, below 1.5724 minor support will turn bias neutral and bring consolidations. But outlook will remain bullish as long as 1.5441 support holds, in case of retreat.
In the bigger picture, strong support from 55 day and 55 week EMA affirms underlying bullishness. As long as 1.5271 support holds, rise from 1.4281 medium term bottom is expected to continue to 1.6434 key resistance next. Decisive break there should confirm medium term bullish trend reversal.
In the longer term picture, sustained trading above 55 month EMA (now at 1.5603) will raise the chance of bullish trend reversal, and at least bring further rally to 1.6434 cluster resistance, 38.2% retracement of 1.9799 (2020 high) to 1.4281 at 1.6389. Firm break of 1.6434 will turn outlook bullish.
