Daily Pivots: (S1) 0.7984; (P) 0.8051; (R1) 0.8092; More…
AUD/USD lost some upside momentum with 4 hour MACD crossed below signal line. But with 0.7956 minor support intact, further rise is expected. Firm break of 0.8124 resistance will resume whole medium term rebound from 0.6826 and target key fibonacci level at 0.8451. On the downside, break of 0.7956 support will indicate short term topping and turn bias to the downside.
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 and bring reversal.
