Daily Pivots: (S1) 0.7013; (P) 0.7035; (R1) 0.7079; More….
AUD/USD recovered after hitting 0.6991 and intraday bias is turned neutral first. Near term outlook stays bearish as long as 0.7157 resistance holds. Break of 0.6991 will resume the corrective fall from 0.7413 to 38.2% retracement of 0.5506 to 0.7413 at 0.6685. However, firm break of 0.7157 will argue that the correction has completed and turn bias back to the upside for 0.7243 resistance 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 correction inside the long term down trend. Sustained trading back below 55 week EMA (now at 0.6927) 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.
