EUR/AUD: Consolidation Is Expected
Trading is on the upside with focus on resistance 1.5781. Trading below minor support 1.5706 will become neutral for consolidation. Further to support turned resistance 1.5984 is expected. Pivot points are at: (S1) 1.5740; (P) 1.5794; (R1) 1.5880.
The drop from 1.6357 should have completed earlier than expected at 1.5346. Overcoming of resistance 1.5894 will bring retest of high 1.6357.
It is considered, that 1.6357 is a medium term top. The range of 1.5271/6357 is likely set for the consolidation. Hitting of 1.6357 will resume the larger uptrend from 1.3624 to 1.6587. Strong bounce ahead of 1.5271 cluster support (38.2% retracement of 1.3624 to 1.6357 at 1.5313) suggests price actions from 1.6357 are developing into sideway consolidation, rather than a deep correction.