Daily Pivots: (S1) 1.3988; (P) 1.4096; (R1) 1.4153; More…
The break of 1.4093 minor support suggests that EUR/AUD’s correction from 1.4025 is completed at 1.4289 already. Intraday bias is back on the downside fro 1.4025 temporary 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. On the upside, break of 1.4289 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
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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