Daily Pivots: (S1) 1.6137; (P) 1.6190; (R1) 1.6236; More…
EUR/AUD is losing some downside momentum as seen in 4 hour MACD. But further fall is expected as long as 1.6374 resistance holds. Current decline from 1.6827 should target a test on 1.6033 low. Decisive break there will resume larger fall from 1.9799. On the upside, break of 1.6374 resistance will extend the consolidation from 1.6033 with another rising leg, and turn bias to the upside for 1.6827.
In the bigger picture, current development suggests that price actions form 1.9799 might be developing into a sideway pattern only. That is, medium term outlook is just neutral, and up trend from 1.1602 (2012 low) could resume at a later stage. On the downside, though, sustained trading below 55 week EMA (now at 1.6463) would revive medium term bearishness for 61.8% retracement of 1.1602 to 1.9799 at 1.4733.
