Daily Pivots: (S1) 0.7792; (P) 0.7834; (R1) 0.7861; More…
AUD/USD’s correction from 0.8065 extends to 0.78907 so far but outlook is unchanged. We’d still expect strong support from 0.7785 cluster support (38.2% retracement of 0.7328 to 0.8065 at 0.7783) to contain downside and bring rebound. Break of 0.7918 minor resistance will suggest that such pull back is completed. In this case, intraday bias will be turned back to the upside for retesting 0.8065. However, firm break of 0.7785 will extend the fall back to 0.7570/7711 support zone.
In the bigger picture, rise from 0.6826 medium term bottom is still in progress. At this point, there is no confirmation of trend reversal yet and we’ll continue to treat such rebound as a corrective pattern. But in any case, break of 55 month EMA (now at 0.8100) will target 38.2% retracement of 1.1079 to 0.6826 at 0.8451. Break of 0.7328 support is needed to confirm completion of the rebound. Otherwise, further rise is now expected.
