Daily Pivots: (S1) 0.6823; (P) 0.6852; (R1) 0.6895; More…
AUD/USD is losing some upside momentum again but there is no clear sign of topping. Current rally would still target 61.8% projection of 0.6271 to 0.6796 from 0.6641 at 0.6965. Firm break there will target 100% projection at 0.7166 next. On the downside, however, break of 0.6728 support will confirm short term topping and turn bias to the downside for 0.6641 support and below.
In the bigger picture, it’s still unsure if price actions from 0.6169 medium term bottom are developing into a corrective pattern or trend rejection. Rejection by 38.2% retracement of 0.8006 to 0.6169 at 0.6871 will maintain medium term bearishness for another fall through 0.6169 at a later stage. However, firm break of 0.6871, and sustained trading above 55 week EMA (now at 0.6912) will raise the chance of the start of a bullish up trend.
