Daily Pivots: (S1) 0.7217; (P) 0.7232; (R1) 0.7260; More…
AUD/USD’s rebound from 0.7020 resumes by taking out 0.7258. Intraday bias is back on the upside for 0.7314 resistance. Current development argues that a medium term bottom might be in place at 0.7020. Firm break of 0.7314 will confirm this bullish case and target 38.2% retracement of 0.8135 to 0.7020 at 0.7446 next. However, on the downside, break of 0.7159 will turn focus back to 0.7020 low instead.
In the bigger picture, as long as 0.7314 resistance holds, fall from 0.8135 is tentatively treated as resuming long term down trend from 1.1079 (2011 high). Decisive break of 0.6826 will target 0.6008 key support next (2008 low). However, firm break of 0.7314 will suggest that whole decline from 0.8135 has completed. And, the corrective pattern from 0.6826 (2016 low) is extending with another rising leg towards 0.8135 before completion.
