Daily Pivots: (S1) 0.7067; (P) 0.7108; (R1) 0.7160; More…
AUD/USD’s rally from 0.7003 accelerated to as high as 0.7168 so far. Decisive break of 0.7121 suggests that corrective decline from 0.7295 has completed with three waves down to 0.7003 already. More importantly, rise from 0.6722 might be in progress. Intraday bias is back on the upside for 0.7206 resistance first. Break will target 0.7295 high next. On the downside, break of 0.7056 is needed to indicate completion of the rise from 0.7003. Otherwise, near term outlook will remain mildly bullish in case of retreat.
In the bigger picture, as long as 0.7393 resistance holds, we’d treat fall from 0.8135 as resuming long term down trend from 1.1079 (2011 high). Decisive break of 0.6826 (2016 low) will confirm this bearish view and resume the down trend to 0.6008 (2008 low). However, firm break of 0.7393 will argue that fall from 0.8135 has completed. And corrective pattern from 0.6826 has started the third leg, targeting 0.8135 again.
