Daily Pivots: (S1) 1.5498; (P) 1.5535; (R1) 1.5582; More….
EUR/AUD’s recovery and break of 1.5593 minor resistance suggests temporary bottoming at 1.5487. Intraday bias is turned neutral for consolidations first. Upside of rebound should be limited well below 1.5773 support turned resistance to bring another fall. As noted before, prior break of 1.5621 support is taken as an indication of medium term reversal. Below 1.5487 will target 1.5153 key support next.
In the bigger picture, rally from 1.3624 (2017 low) should have completed at 1.6189 already, ahead of 1.6587 key resistance (2015 high). 1.6189 is seen as a medium term top. Deeper fall would be seen to 38.2% retracement of 1.3624 to 1.6189 at 1.5209 first. Decisive break there will pave the way to 61.8% retracement at 1.4604. In that case, we’ll look for bottoming again below 1.4604. On the upside, break of 55 day EMA (now at 1.5849) is needed to indicate completion of the fall from 1.6189. Otherwise, further fall is expected in medium term, even in case of strong rebound.
