EUR/AUD Daily Outlook

EUR/AUD Daily Outlook

Daily Pivots: (S1) 1.5216; (P) 1.5269; (R1) 1.5312; More.....

Intraday bias in EUR/AUD remains neutral for the moment. Another rise is in favor as long as 1.5084 minor support holds. Above 1.5386 will target 61.8% retracement of 1.5831 to 1.4987 at 1.5509. We'd be cautious on strong resistance between 1.5509 and 1.5831 to bring another fall to extend consolidation. Meanwhile, below 1.5084 will likely send EUR/AUD through to 1.4987 to resume the corrective fall from there.

In the bigger picture, loss of momentum is seen in EUR/AUD in bearish divergence condition in daily and weekly MACD. But so far, the cross is holding well above medium term rising trend line (1.2218 to 1.4050). Thus, there is no clear indication on reversal yet. The up trend from 1.1602 could extend further to 50% retracement of 2.1127 (2008 high) to 1.1602 (2012 low) at 1.6365. Meanwhile, break of 1.4987 should now have the trend line firmly taken out and would bring deeper correction to 1.4050 support.