Daily Pivots: (S1) 0.7885; (P) 0.7914; (R1) 0.7941; More…
AUD/USD’s break of 0.7877 support confirms short term topping at 0.8065. Intraday bias is back on the downside for pull back to 0.7785 cluster support (38.2% retracement of 0.7328 to 0.8065 at 0.7783) to bring rebound. But break 0.8065 is needed to confirm rally resumption. Otherwise, we’d expect more consolidative trading in near term.
In the bigger picture, current development suggests that rebound from 0.6826 is developing into a medium term rise. There is no confirmation of trend reversal yet and we’ll continue to treat such rebound as a corrective pattern. But in any case, break of 55 month EMA (now at 0.8100) will target 38.2% retracement of 1.1079 to 0.6826 at 0.8451. Break of 0.7328 support is needed to confirm completion of the rebound. Otherwise, further rise is now expected.
