Daily Pivots: (S1) 0.7863; (P) 0.7893; (R1) 0.7942; More…
AUD/USD’s rally continues to as high as 0.7964 so far. The strong break of 0.7896 cluster resistance (61.8% retracement of 0.8124 to 0.7500 at 0.7886) resistance zone indicates solid upside momentum. Rise from 0.7500 could be resuming whole medium term rebound from 0.6826. Intraday bias stays on the upside for 0.8124 resistance and above first. On the downside, break of 0.7804 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.
In the bigger picture, current development suggests that medium term rebound from 0.6826 is still in progress and could be resuming. Such rise could target 38.2% retracement of 1.1079 (2011 high) to 0.6826 (2016 low) at 0.8451. As such rise is seen as a corrective move, we’d expect strong resistance from 0.8451 to limit upside.
