Daily Pivots: (S1) 0.7150; (P) 0.7213; (R1) 0.7247; More…
AUD/USD retreated sharply after hitting 0.7275 and intraday bias is turned neutral. Further rise could be seen as long as 0.7109 support holds. Break of 0.7275 will target 0.7311 long term EMA. Nevertheless, considering persistent bearish divergence condition in 4 hour MACD, break of 0.7109 support should confirm short term topping. Intraday bias will be turned back to the downside for correction towards 0.6776 support.
In the bigger picture, rebound from 0.5506 medium term bottom could be correcting whole long term down trend from 1.1079 (2011 high). Further rally would be seen to 55 month EMA (now at 0.7311). This will remain the preferred case as long as it stays above 55 week EMA (now at 0.6804). However, sustained trading below 55 week EMA will turn focus back to 0.5506 low instead.
