Daily Pivots: (S1) 1.6123; (P) 1.6291; (R1) 1.6423; More….
EUR/AUD’s rally extends after brief retreat and reaches as high 1.6348 so far. Intraday bias stays on the upside for 1.6357 high. At this point, we’d be cautious on topping around there to bring pull back. On the downside, break of 1.6162 will turn bias to the downside for pull back. Meanwhile, sustained break of 1.6357 will confirm up trend resistance for next key resistance at 1.6587.
In the bigger picture, no change in the view that 1.6357 is a medium term top. But the strong rebound ahead of 1.5271 cluster support (38.2% retracement of 1.3624 to 1.6357 at 1.5313) suggests price actions from 1.6357 are developing into sideway consolidation, rather than a deep correction. The range of 1.5271/6357 is likely set for the consolidation. And we don’t expect a break of the range any time soon. But decisive break of 1.6357 will resume the larger up trend from 1.3624 (2017 low) to 1.6587 (2015 high).
