Daily Pivots: (S1) 0.7565; (P) 0.7588; (R1) 0.7611; More…
AUD/USD retreats today as rebound from 0.7472 lost momentum after hitting 0.7609. Intraday bias is turned neutral first. At this point, we’re still slightly favoring the case that pull back from 0.7748 is completed at 0.7472. And rise fro 0.7158 is possibly resuming. Above 0.7609 will target 0.7678 resistance first. Break there will confirm this case and send AUD/USD through 0.7748 towards long term fibonacci level at 0.7849. On the downside, though, below 0.7530 minor support will turn bias back to the downside for 0.7472 instead.
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 seen to 55 month EMA (now at 0.8144) and above.
