Daily Pivots: (S1) 1.3916; (P) 1.3965; (R1) 1.4007; More

EUR/AUD’s pull back indicates temporary topping at 1.4014. Intraday bias is turned neutral for consolidation. We’re holding on to the view that a short term bottom was formed at 1.3624, on bullish convergence condition in 4 hour MACD. And, the cross could have defended 1.3671 key support level successfully and is staging trend reversal. Above 1.4014 will target 1.4289 resistance first. Break will affirm this case and target 1.4721 resistance for confirmation. On the downside, below 1.3835 minor support will dampen this bullish view and turn bias back to the downside for 1.3624 low.

In the bigger picture, price actions from 1.6587 medium term top are viewed as a corrective pattern. We’d expect strong support from 1.3671 key level to contain downside and bring rebound. Up trend from 1.1602 should not be finished and will resume later. Break of 1.4721 resistance will indicate completion of such correction and turn outlook bullish for retesting 1.6587 high. However, sustained break of 1.3671 will invalidate our bullish view and would turn focus back to 1.1602 long term bottom.

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