Daily Pivots: (S1) 0.6823; (P) 0.6852; (R1) 0.6895; More…
A short term top is formed at 0.6892 in AUD/USD with current decline. Intraday bias back on the downside for 38.2% retracement of 0.6169 to 0.6892 at 0.6616. Sustained break there will suggest rejection by 0.66871 fibonacci level. Deeper fall should then be seen to 61.8% retracement at 0.6445. For now, risk will stay mildly on the downside as long as 0.6892 resistance holds, in case of recovery.
In the bigger picture, it’s still unsure if price actions from 0.6169 medium term bottom are developing into a corrective pattern or trend rejection. Rejection by 38.2% retracement of 0.8006 to 0.6169 at 0.6871 will maintain medium term bearishness for another fall through 0.6169 at a later stage. However, firm break of 0.6871, and sustained trading above 55 week EMA (now at 0.6912) will raise the chance of the start of a bullish up trend.
