AUD/USD’s extended fall suggests that rebound from 0.6893 has completed at 0.7067 already, after failing to sustain above 55 D EMA. Intraday bias is back on the downside for retesting 0.6893 low. Risk will now be on the downside as long as 0.7067 holds, in case of recovery.
In the bigger picture, price action from 0.7277 medium term top is seen as developing into a corrective pattern to rise from 0.5913. While deeper pullback cannot be ruled out, downside should be contained by 38.2% retracement of 0.5913 to 0.7277 at 0.6756 to bring rebound. Consolidations would continue below 0.7277 for a while, before an eventual upside breakout. However, sustained break of 0.6756 will raise the chance of larger bearish reversal.
