Daily Pivots: (S1) 0.7603; (P) 0.7661; (R1) 0.7767; More…
AUD/USD’s strong rebound and break of 0.7631 resistance indicates that the pull back from 0.7740 is completed. The development indicates that rise from 0.7158 is likely resuming. Intraday bias is back on the upside for 0.7740 resistance first. Decisive break there will target 61.8% projection of 0.7158 to 0.7740 from 0.7490 at 0.7850 next. That coincides with key long term retracement level at 0.7849. On the downside, outlook will stay bullish now as long as 0.7490 support holds, in case of retreat.
In the bigger picture, we’re still treating price actions from 0.6826 low as a correction. And, as long as 38.2% retracement of 0.9504 to 0.6826 at 0.7849 holds, long term down trend from 1.1079 is expected to resume sooner or later. Break of 0.6826 low will target 0.6008 key support level. However, firm break of 0.7849 will indicate that rise from 0.6826 is developing into a medium term rebound, rather than a sideway pattern. In such case, stronger rise should be seek to 55 month EMA (now at 0.8185) and above.
