Daily Pivots: (S1) 0.7917; (P) 0.7965; (R1) 0.8053; More…
While AUD/USD loses some upside momentum, with 0.7877 support intact, further rise is still expected. Current rally from 0.7328 should target next key projection level at 100% projection of 0.6826 to 0.7833 from 0.7328 at 0.8335. Nonetheless, break of 0.7877 will indicate short term topping and bring deeper pull back to 0.7711 resistance turned support.
In the bigger picture, current development suggests that rebound from 0.6826 is developing into a medium term rise. There is no confirmation of trend reversal yet and we’ll continue to treat such rebound as a corrective pattern. But in any case, further rise is now expected to 55 month EMA (now at 0.8100) or even further to 38.2% retracement of 1.1079 to 0.6826 at 0.8451. Break of 0.7328 support is needed to confirm completion of the rebound. Otherwise, further rise is now expected.
