Daily Pivots: (S1) 0.6667; (P) 0.6697; (R1) 0.6738; More…
AUD/USD’s break of 0.6742 minor resistance suggests that pull back from 0.6892 has completed at 0.6628 already, ahead of 38.2% retracement of 0.6169 to 0.6892 at 0.6616. Intraday bias is back on the upside for retesting 0.6892. Firm break there will resume larger rise from 0.6169. On the downside, though, sustained break of 0.6616 will indicate rejection by 0.66871 fibonacci level and bring deeper decline.
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 reversal. 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 0.6900) will raise the chance of the start of a bullish up trend.
