Daily Pivots: (S1) 0.6891; (P) 0.6906; (R1) 0.6928; More…
AUD/USD is staying in consolidation below 0.6929 temporary top and intraday bias remains neutral first. In case of another fall, downside of retreat should be contained above 0.6809 support to bring another rise. Prior break of 0.6894 resistance was taken as the first sign of medium term reversal. This is affirmed by the strong support by 55 day EMA. Above 0.6929 will target 0.7082 key resistance for confirmation. On the downside, though, break of 0.6809 support will revive bearishness and target 0.6670 low again.
In the bigger picture, the case of medium term bullish reversal is building up with bullish convergence condition in weekly MACD. But there is no clear confirmation yet. As long as 0.7082 resistance holds, larger down trend from 0.8135 (2018 high) is still expect to continue to 0.6008 (2008 low). However, decisive break of 0.7082 will confirm medium term bottoming and bring stronger rally back to 55 month EMA (now at 0.7531).
