EUR/AUD continued to trade sideway last week and outlook is unchanged. Initial bias remains neutral this week first. Further rise is expected as long as 1.7809 support holds. Above 1.7989 will target 61.8% retracement of 1.8554 to 1.7245 at 1.8054. Sustained break there will pave the way to 1.8554. However, firm break of 1.7809 and sustained trading below near term channel support will argue that rise from 1.7245 might have completed. Intraday bias will turn back to the downside for 1.7626 support next.
In the bigger picture, price actions from 1.8554 medium term are seen as a corrective pattern. While deeper pullback might be seen, downside should be contained by 38.2% retracement of 1.4281 (2022 low) to 1.8554 at 1.6922 to bring rebound. Up trend from 1.4281 is expected to resume at a later stage.
In the longer term picture, rise from 1.4281 is seen as the second leg of the pattern from 1.9799 (2020 high), which is part of the pattern from 2.1127 (2008 high). As long as 55 M EMA (now at 1.6365) holds, this second leg could still extend higher.
