Daily Pivots: (S1) 0.6858; (P) 0.6921; (R1) 0.6984; More…
A temporary top is formed at 0.6983 in AUD/USD and intraday bias is turned neutral first. As long as 0.6569 resistance turned support holds, further rally will remain mildly in favor. On the upside, decisive break of 0.7031 will carry larger bullish implications. Nevertheless, break of 0.6569 will suggest near term reversal and turn outlook bearish for 0.6402 support and below.
In the bigger picture, the firm break of 0.6826 (2016 low) now suggests that 0.5506 is a medium term bottom. Rebound from there is likely correcting whole long term down trend form 1.1079 (2011 high). Further rally would be seen to 55 month EMA (now at 0.7365). This will remain the preferred case as long as it stays above 55 week EMA (now at 0.6710).
