EUR/AUD’s decline from 1.6593 resumed last week, through 1.6256 support to as low as 1.6085. As a temporary low was formed, initial bias is neutral this week first. But further fall is in favor as long as 1.6256 support turned resistance holds. Below 1.6085 will target a test on 1.5962 support. Nevertheless, firm break of 1.6256 will turn bias to the upside for 1.6448 resistance.
In the bigger picture, EUR/AUD is still struggling in established range of 1.5905/6786. And it’s trying to draw support from 55 week EMA (now at 1.6113) again. For now, larger up trend from 1.1602 (2012 low) is still in favor to continue as long as 1.5962 support holds. Break of 1.6503 will target 61.8% retracement of 2.1127 (2008 high) to 1.1602 at 1.7488.
In the longer term picture, the rise from 1.1602 long term bottom (2012 low) is still in progress for 61.8% retracement of 2.1127 to 1.1602 at 1.7488. This will remain the favored case as long as 1.5962 remains intact. However, firm break of 1.5962 will be an early sign of major topping and turn focus to 1.5346 key support for confirmation.