Daily Pivots: (S1) 0.7717; (P) 0.7723; (R1) 0.7734; More…
AUD/USD surges to as high as 0.7775 so far as rebound from 0.7500 extends. Current development suggests that the decline from 0.8124 is completed. It remains to be seen if rise from 0.7500 is an impulsive move. But intraday bias will stay on the upside for 0.7896 cluster resistance (61.8% retracement of 0.8124 to 0.7500 at 0.7886). On the downside, break of 0.7653 support is needed to indicate the completion of the rebound. Otherwise, further rise will remain in favor in case of retreat.
In the bigger picture, we’re still slightly favoring the case that corrective rise from 0.6826 medium term bottom is likely completed at 0.8124, after hitting 55 month EMA (now at 0.8034). But stronger than expected rebound from 0.7500 is dampening this bearish view. On the downside, break of 0.7500 will target 0.7328 key cluster support (61.8% retracement 0.6826 to 0.8124 at 0.7322) to confirm this bearish case. But break of 0.8124 will extend the rise from 0.6826 to 38.2% retracement of 1.1079 (2011 high) to 0.6826 (2016 low) at 0.8451 before completion.
