Daily Pivots: (S1) 1.5717; (P) 1.5833; (R1) 1.5903; More

EUR/AUD retreated sharply after hitting channel resistance and intraday bias is turned neutral. Rejection by the channel resistance will retain near term bearishness. Break of 1.5591 will resume larger down trend from 1.9799. Though, sustained break of the channel resistance will argue that whole fall from 1.6827 has completed. Stronger rebound would then be seen to 1.6144 support turned resistance next.

In the bigger picture, current development suggests that price actions from 1.9799 is developing into a deep correction, to long term up trend from 1.1602 (2012 low). Deeper fall would be seen to 61.8% retracement of 1.1602 to 1.9799 at 1.4733. Medium term outlook will remain bearish as long as 1.6827 resistance holds, even in case of strong rebound.

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