Daily Pivots: (S1) 0.7340; (P) 0.7372; (R1) 0.7399; More…
AUD/USD is staying in retreat from 0.7477 and intraday bias remains neutral first. Further rally is still in favor as long as 0.7279 support holds. As noted before, correction from 0.8006 should have completed at 0.7105 already. Above 0.7477 will target 0.7530 support turned resistance first. However, firm break of 0.7279 will dampen our bullish view and bring retest of 0.7105 low.
In the bigger picture, with 0.6991 cluster support (38.2% retracement of 0.5506 to 0.8006 at 0.7051) intact, we’re seeing price action form 0.8006 as a correction only. That is, up trend from 0.5506 low would resume after the correction completes. In that case, main focus will be 0.8135 key resistance (2018 high). Sustained break there will carry larger bullish implications. However, sustained break of 0.6991 will argue that the whole medium term trend has indeed reversed.
