Daily Pivots: (S1) 1.5888; (P) 1.5964; (R1) 1.6006; More….
EUR/AUD formed a temporary top at 1.6039 and retreated since then. Intraday bias is turned neutral first. But further rally is still expected in the cross. Above 1.6039 will resume the larger rise to 61.8% projection of 1.5130 to 1.5976 from 1.5621 at 1.6130 first. Break there will target 100% projection at 1.6444 next. However, break of 1.5791 minor support will be an early sign of near term reversal. In such case, focus will be turned back to 1.5621 support.
In the bigger picture, current development suggests that rise from 1.3624 is not completed yet. And it’s still in progress for 1.6587 key resistance level. We’d be cautious on strong resistance from there to limit upside, on bearish divergence condition in daily MACD. But for now, break of 1.5153 support is needed to indicate medium term reversal. Otherwise, outlook will stays bullish even in case of deep pull back.
