EUR/AUD’s consolidation from 1.6786 extended last week outlook is unchanged. In case of another fall, downside should be contained by 1.6247 resistance turned support to bring rise resumption. On the upside, above 1.6594 minor resistance will turn bias back to the upside for retesting 1.6786 resistance first. Break will resume larger up trend. However, firm break of 1.6247 will turn focus back to 1.5894 support instead.
In the bigger picture, outlook remains bullish as up trend from 1.1602 (2012 low) is resuming. Strong support from 55 week EMA indicates medium term bullishness. Next upside target is 61.8% retracement of 2.1127 (2008 high) to 1.1602 at 1.7488. In any case, break of 1.5894 support is needed to be the first sign of medium term topping. Otherwise, outlook will remain bullish even in case of deep pull back.
In the longer term picture, the rise from 1.1602 long term bottom (2012 low) is still in progress for 61.8% retracement of 2.1127 to 1.1602 at 1.7488. This will remain the favored case as long as 1.5346 remains intact.
