Daily Pivots: (S1) 1.5687; (P) 1.5740; (R1) 1.5814; More

EUR/AUD rebounds to as high as 1.5792. But we’re holding on to the view that price actions from 1.5250 are merely a consolidation pattern. hence, upside should be limited by 38.2% retracement of 1.6827 to 1.5250 at 1.5852. On the downside, break of 1.5603 will turn bias back to the downside for retesting 1.5250 low. Overall, down trend from 1.9799 is expected to resume after consolidation from 1.5250 completes.

In the bigger picture, price actions from 1.9799 are 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 1.6033 support turned resistance holds, even in case of strong rebound.

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