Daily Pivots: (S1) 0.7513; (P) 0.7545; (R1) 0.7566; More…
Intraday bias in AUD/USD is turned neutral with today’s retreat. Some consolidations could be seen but further rise is expected with 0.7485 minor support intact. Above 0.7578 will extend larger rally to 0.7635 key long term fibonacci level. However, considering bearish divergence condition in 4 hour MACD, break of 0.7485 would suggest short term topping. In this case, intraday bias will be turned to the downside for deeper pull back, to 55 day EMA (now at 0.7298).
In the bigger picture, the sustained trading above 55 week EMA (now at 0.6994) is a sign of medium term bullishness. Nevertheless, AUD/USD will still need to overcome 38.2% retracement of 1.1079 (2011 high) to 0.5506 (2020 low) at 0.7635 decisively to indicate completion of long term down trend from 1.1079. In that case, next medium term target would be 61.8% retracement at 0.8950. Rejection by 0.7635 will retain long term bearishness instead.
