Daily Pivots: (S1) 0.6795; (P) 0.6899; (R1) 0.6959; More…
AUD/USD’s break of 0.6898 minor support suggests short term topping at 0.7064, after failing to sustain above 0.7031 resistance. Intraday bias is turned back to the downside. Deeper pull back would be seen to 38.2% retracement of 0.5506 to 0.7064 at 0.6469. On the upside, firm break of 0.7031/64 is needed to confirm rise resumption. Otherwise, risk will now stay mildly on the downside in case of recovery.
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 0.7326). This will remain the preferred case as long as it stays above 55 week EMA (now at 0.6721).
