Daily Pivots: (S1) 1.5386; (P) 1.5426; (R1) 1.5492; More….
EUR/AUD drew support from 55 day EMA and recovered mildly. Intraday bias is turned neutral first. Correction from 1.5770 could still extend lower. But we’d expect strong support from 1.5226 to contain downside to bring up trend resumption. On the upside, above 1.5482 minor resistance will bring retest of 1.5770 first. However, sustained break of 1.5226 will carry larger bearish implications and turn outlook bearish.
In the bigger picture, we’re holding on to the view that corrective decline from 1.6587 medium term top (2015 high) has completed at 1.3624. Rise from 1.3624 is expected to extend to retest 1.6587. We’ll hold on to this bullish view as long as 1.5226 resistance turned support holds. Firm break of 1.6587 will resume long term rise from 1.1602 (2012 low). However, sustained break of 1.5226 will indicate trend reversal and target 1.3624 again.
