Daily Pivots: (S1) 1.4199; (P) 1.4267; (R1) 1.4305; More…
A temporary top is in place at 1.4334 and intraday bias in EUR/AUD is turned neutral first. We’re holding on to the case off trend reversal after defending 1.3671 key support. Downside of current retreat should be contained well above 1.3980 support and bring another rally. Above 1.4334 will target 1.4721 key resistance. Decisive break there will confirm our bullish view.
In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. Such correction could be completed after testing 1.3671 key support. Break of 1.4721 cluster resistance (38.2% retracement of 1.6587 to 1.3624 at 1.4756) should confirm this case and target 61.8% retracement at 1.5455 and above. Overall, we’d expect the up trend from 1.1602 to resume later. However, sustained break of 1.3671 will invalidate our bullish view and would turn extend the fall from 1.6587 towards 1.1602 long term bottom.
