Daily Pivots: (S1) 0.7198; (P) 0.7217; (R1) 0.7230; More…
Intraday bias in AUD/USD is turned neutral with today’s retreat. But further rise is in favor as long as 0.7095 support holds. On the upside, above 0.7243 will extend the rebound form 0.7005 to retest 0.7413 high. Decisive break there will resume larger rise form 0.5506 to 0.7635 fibonacci level. However, firm break of 0.7095 will argue that corrective fall from 0.7413 is resuming through 0.7005.
In the bigger picture, while rebound from 0.5506 was strong, there is not enough evidence to confirm bullish trend reversal yet. That is, it could be just a corrective inside the long term up trend. Sustained trading back below 55 week EMA (now at 0.6898) will favor the bearish case and argue that the rebound has completed. Focus will be turned back to 0.5506 low. On the upside, break of 0.7413 will extend the rise from 0.5506 to 38.2% retracement of 1.1079 (2011 high) to 0.5506 (2020 low) at 0.7635.
