Daily Pivots: (S1) 0.7862; (P) 0.7928; (R1) 0.7967; More…
AUD/USD reversed again after hitting 0.7995 and intraday bias is turned neutral. Near term outlook is unchanged. Price actions from 0.8065 are developing into a consolidation pattern. In case of another fall, downside should be contained by 0.7785 cluster support (38.2% retracement of 0.7328 to 0.8065 at 0.7783) to bring rebound. Firm break of 0.8065 will confirm rally resumption for 100% projection of 0.6826 to 0.7833 from 0.7328 at 0.8335.
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 0.8097) 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 in favor.