Daily Pivots: (S1) 0.7553; (P) 0.7580; (R1) 0.7608; More…
AUD/USD continues to lose upside momentum as seen in bearish divergence condition in 4 hour MACD. With 0.7448 minor support intact, there is no confirmation of topping yet. But in case of another rise, we’d expect upside to be limited by 0.7777/7833 resistance zone to bring near term reversal. On the downside, break of 0.7448 will indicate that rebound from 0.7158 is completed and turn bias back to the downside for 0.7144 key support level.
In the bigger picture, AUD/USD is staying inside long term falling channel and it’s likely that the down trend from 1.1079 is still in progress. Break of 0.6826 low will confirm this bearish case. We’ll be looking for bottoming sign again as it approaches 0.6008 key support level. Meanwhile, sustained break of 0.7833 resistance will be a strong sign of medium term reversal.
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