EUR/AUD: The market has retraced sharply in early trade on Thursday, with the cross collapsing in a matter of hours all the way back to the 78.6% fib retrace off of the recent 1.5415-1.5955 move. However, any additional setbacks from here are seen limited, with our core bias favoring the formation of a major base at current levels, given the overextended longer-term cyclicals. As such, we are looking to take advantage of these sharp pullbacks in anticipation of the decline being very short-lived and potentially the last shot to establish a very compelling position so close to what could be a long-term low at 1.5415. POSITION: LONG @1.5525 FOR AN OPEN OBJECTIVE; STOP 1.5325. POSITION SIZE IS 3X TOTAL EQUITY.
[B]Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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