Daily Pivots: (S1) 0.6978; (P) 0.7003; (R1) 0.7045; More…
AUD/USD edged higher to 0.7042 but failed to sustain above 0.7031 resistance and retreat. Intraday bias remains neutral first. On the downside, break of 0.6856 support should indicate short term topping. Intraday bias will be turned back to the downside for 0.6569 resistance turned support. Nevertheless, decisive break of 0.7031 will extend the rise from 0.5506.
In the bigger picture, the firm break of 0.6826 (2016 low) now suggests that 0.5506 is a medium term bottom. Rebound from there is likely correcting whole long term down trend form 1.1079 (2011 high). Further rally would be seen to 55 month EMA (now at 0.7326). This will remain the preferred case as long as it stays above 55 week EMA (now at 0.6721).
