Daily Pivots: (S1) 1.5882; (P) 1.5936; (R1) 1.6025; More….
EUR/AUD’s recovers again but stays in range of 1.5773/6059. Intraday bias remains neutral first. Another fall is in favor as long as 1.6059 holds. Break of 1.5773 will target 1.5621 support first. Decisive break there will be another indication of medium term trend reversal. However, break of 1.6059 will turn bias back to the upside and target a test on 1.6189 high instead.
In the bigger picture, the case for medium term reversal is building up in EUR/AUD. Bearish divergence condition in daily MACD indicates further loss of upside momentum ahead of 1.6587 key resistance (2015 high). Break of 1.5621 should confirm medium term topping and bring deeper fall back to 1.5153 and possibly below. Meanwhile, even in case of up trend resumption, we’d be cautious on strong resistance from 1.6587 to limit upside and bring reversal.
