Daily Pivots: (S1) 0.7146; (P) 0.7169; (R1) 0.7184; More…
AUD/USD’s strong break of 0.7095 suggests that recovery from 0.7005 has completed at 0.7243. Correction fall form 0.7413 should be ready to resume. Intraday bias is back on the downside for 0.7005 first. Break will target 38.2% retracement of 0.5506 to 0.7413 at 0.6685. On the upside, above 0.7128 minor resistance will dampen this bearish case and turn bias neutral first.
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 0.6915) 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.
