EUR/AUD Daily Outlook

Daily Pivots: (S1) 1.4158; (P) 1.4224; (R1) 1.4259; More

EUR/AUD drops sharply after hitting 1.4289 and intraday bias is turned neutral first. Price actions from 1.4025 are viewed as a correction. On the downside, break of 1.4093 will turn bias to the downside for 1.4025 low first. Break will resume the larger fall from 1.6587 to key support level at 1.3671. We’d expect downside to be contained there to bring reversal. Meanwhile, above 1.4289 will target 1.4322/4467 resistance zone first.

In the bigger picture, price actions from 1.6587 medium term top are viewed as a consolidative pattern. 50% retracement of 1.1602 to 1.6587 at 1.4095 was already met. While further fall cannot be ruled out, we’d expect strong support above 1.3671 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 be the first sign of resumption of up trend from 1.1602 and target retesting of 1.6587 high first.

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