AUD/USD’s rebound from 0.6677 extend higher last week despite diminishing upside momentum. Further rise is expected this week as long as 0.6807 minor support holds. Firm break of 0.6910 support turned resistance will target 0.7802 key resistance next. On the downside, below 0.6807 minor support will turn intraday bias back to the downside for retesting 0.6677 low.
In the bigger picture, decline from 0.8135 (2018 high) is seen as resuming the long term down trend from 1.1079 (2011 high). Next target is 0.6008 (2008 low). On the upside, break of 0.7082 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.
In the longer term picture, prior rejection by 55 month EMA maintained long term bearishness in AUD/USD. That is, down trend from 1.1079 (2011 high) is still in progress. Sustained break of 0.6826 will target 0.6008 low and then 61.8% projection of 1.1079 to 0.6826 from 0.8135 at 0.5507.
