EUR/AUD Daily Outlook

EUR/AUD Daily Outlook

Daily Pivots: (S1) 1.4990; (P) 1.5076; (R1) 1.5135; More.....

Further rise could still be seen in EUR/AUD. But we'd be careful on strong resistance from long term retracement level at 1.5241 to bring topping and reversal. Break of 1.4798 support will indicate that a short term top is at least formed, with bearish divergence condition in 4 hours MACD. In such case, near term outlook will be turned bearish for pull back to 55 days EMA (now at 1.4563) first.

In the bigger picture, current development suggests that medium term rebound from 1.1602 is not finished yet. The support from 55 months EMA suggests that upside momentum is still solid. Sustained break of 38.2% retracement of 2.1127 to 1.1602 at 1.5241 will pave the way to 50% retracement at 1.6365 and above. Though, bounce off from 1.5241 will bring some medium term consolidation pattern before staging another rally.