Daily Pivots: (S1) 0.7468; (P) 0.7495; (R1) 0.7533; More…
AUD/USD’s strong rally and break of 0.7516 resistance indicates that the decline from 0.7748 is already completed at 0.7328. Intraday bias is back on the upside for 0.7748 and possibly above. But then, we’ll be cautious on topping again as it approaches medium term fibonacci level at 0.7849. On the downside, below 0.7456 minor support will turn bias back to the downside for 0.7328 short term bottom.
In the bigger picture, we’re still treating price actions from 0.6826 low as a corrective pattern. 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 0.8091) and above.
