Daily Pivots: (S1) 0.7179; (P) 0.7202; (R1) 0.7237; More…
With 4 hour MACD crossed above signal line, a temporary low is in place at 0.7165 in AUD/USD. Intraday bias is turned neutral for consolidation. Stronger recovery could be seen back to 4 hour 55 EMA (now at 0.7269. But upside should be limited well below 0.7361 resistance to bring fall resumption. On the downside, below 0.7165 will target 100% projection of 0.7452 to 0.7201 from 0.7361 at 0.7110. Break will target 161.8% projection at 0.6955.
In the bigger picture, rebound from 0.6826 (2016 low) is seen as a corrective move that should be completed at 0.8135. Fall from there would extend to have a test on 0.6826. There is prospect of resuming long term down trend from 1.1079 (2011 high). But we’ll look at downside momentum to assess at a later stage. On the upside, break of 0.7452 resistance, however, will indicate medium term bottoming, on bullish convergence condition in daily MACD. In that case, a medium term correction should be seen first before down trend resumption.
