Daily Pivots: (S1) 1.5820; (P) 1.5838; (R1) 1.5869; More…
EUR/AUD recovers strong after drawing support from 4 hour 55 EMA. Intraday bias is turned neutral first. At this point, we’re still slightly favoring the bullish case that correction from 1.6765 has completed with three waves down to 1.5683. On the upside, above 1.5959 affirm this week and target 1.6122 resistance for confirmation. On the downside, in case of another fall, downside should be contained above 1.5683 to bring rise resumption.
In the bigger picture, as long as 1.5346 support holds, outlook will still remain bullish. Uptrend from 1.1602 (2012 low) is expected to resume sooner or later. Break of 1.6765 will target 61.8% retracement of 2.1127 (2008 high) to 1.1602 at 1.7488 next. However, firm break of 1.5346 key support will indicate trend reversal, with bearish divergence condition in weekly MACD, and turn outlook bearish.
