EUR/AUD Daily Outlook

Daily Pivots: (S1) 1.5440; (P) 1.5507; (R1) 1.5623; More….

EUR/AUD surges to as high as 1.5622 as rebound from 1.5153 resumed. Intraday bias is back on the upside for 1.5770 resistance. At this point, we’d be cautious on strong resistance from there to limit upside and bring another decline. Below 1.5494 resistance turned support will turn intraday bias back to the upside. Nonetheless, sustained break of 1.5770 will confirm resumption of larger up trend from 136.24.

In the bigger picture, price actions from 1.5770 so far suggests that it’s corrective in nature. That is, medium term rise from 1.3624 is not completed yet. Break of 1.5770 will extend the rise to retest 1.6587 (2015 high). However, considering bearish divergence condition in daily MACD, sustained break of 1.4949 cluster support (38.2% retracement of 1.3624 to 1.5770 at 1.4950) will indicate medium term reversal. And there is prospect of retesting 1.3624 low in that bearish case.

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