Daily Pivots: (S1) 1.6636; (P) 1.6735; (R1) 1.6929; More…
EUR/AUD rebounded strongly after drawing support from 1.6597 key long term support level. A short term bottom is likely formed with firm break of 4 hour 55 EMA, on bullish convergence condition in 4 hour MACD. Intraday bias is back on the upside for 1.7321 resistance first. Break will confirm this case and target 38.2% retracement of 1.9799 to 1.6538 at 1.7748 next. For now, risk will stay on the upside as long as 1.6538 holds.
In the bigger picture, while the pull back from 1.9799 is deep, there is no clear sign of trend reversal yet. EUR/AUD is still holding on to 1.6597 (2015 high) cluster support, with 38.2% retracement of 1.1602 to 1.9799 at 1.6668. Larger rise from 1.1602 (2012 low) is in progress and would resume at a later stage. However, sustained break of 1.6597 suggest bearish reversal.
