Daily Pivots: (S1) 0.7146; (P) 0.7169; (R1) 0.7184; More…
AUD/USD’s fall from 0.7243 extends lower but stays above 0.7095 support. Intraday bias remains neutral first. Another rise could still be seen as long as 0.7095 support holds. On the upside, above 0.7243 will extend the rebound from 0.7005 to retest 0.7413 high. Decisive break there will resume larger rise form 0.5506 to 0.7635 fibonacci level. However, firm break of 0.7095 will argue that corrective fall from 0.7413 is resuming. Intraday bias will be turned back to the downside for 0.7005, and then 38.2% retracement of 0.5506 to 0.7413 at 0.6685.
In the bigger picture, while rebound from 0.5506 was strong, there is not enough evidence to confirm bullish trend reversal yet. That is, it could be just a corrective inside the long term up trend. Sustained trading back below 55 week EMA (now at 0.6898) will favor the bearish case and argue that the rebound has completed. Focus will be turned back to 0.5506 low. On the upside, break of 0.7413 will extend the rise from 0.5506 to 38.2% retracement of 1.1079 (2011 high) to 0.5506 (2020 low) at 0.7635.
