Daily Pivots: (S1) 1.6003; (P) 1.6030; (R1) 1.6067; More….
EUR/AUD’s fall from 1.6139 is extending after brief consolidation. Intraday bias stays on the downside. Such decline is viewed as the third leg of the consolidation pattern from 1.6189. Further fall should be seen to 1.5773 support, or below. But downside should be contained above 1.5621 to bring rise resumption. On the upside, above 1.6055 minor resistance will turn bias to the upside for 1.6189 high again.
In the bigger picture, while there is bearish divergence condition in daily MACD, there is no clear sign of reversal yet. EUR/AUD also drew strong support from 55 day EMA and rebounded. Current rally from 1.3624 could still extend to 1.6587 key resistance (2015 high). Nonetheless, we’d expect further loss of upside momentum, and strong resistance from 1.6587 to limit upside and bring reversal. On the downside, sustained break of 1.5621 support should confirm reversal and turn outlook bearish for 1.5153 support and below.
