EUR/AUD Mid-Day Outlook

Daily Pivots: (S1) 1.5780; (P) 1.5826; (R1) 1.5903; More….

EUR/AUD retreats sharply after hitting 1.5886 and intraday bias is turned neutral again. As long as 1.5696 minor support holds further rise is still in favor. Above 1.5886 will target 1.6139/89 resistance zone. However, as the rebound from 1.5271 is not clearly impulsive yet and momentum isn’t too convincing. Break of 1.5695 minor support could be an early sign of near term topping. In such case, focus will be back on 1.5425 support.

In the bigger picture, current development suggests that fall from 1.6189 is a corrective move and has completed at 1.5217 already. Key support levels of 1.5153 and 38.2% retracement of 1.3624 to 1.6189 at 1.5209 were defended. And medium term rise from 1.3624 (2017 low) is not completed yet. Break of 1.6189 will target 1.6587 key resistance (2015 high).