Daily Pivots: (S1) 0.7487; (P) 0.7507; (R1) 0.7542; More…
AUD/USD rebounded strongly with firm break of 0.7531 minor resistance. That indicates fall from 0.7748 is completed at 0.7472, after failing to sustain below 0.7490 key support. Intraday bias is turned back to the upside for 0.7678 resistance. More importantly, the development argues that rise from 0.7158 may be resuming. Break of 0.7678 could now pave the way through 0.7748 and put key fibonacci level at 0.7849 in focus. On the downside, below 0.7530 minor support will turn bias neutral again.
In the bigger picture, we’re still treating price actions from 0.6826 low as a correction. And, as long as 38.2% retracement of 0.9504 to 0.6826 at 0.7849 holds, long term down trend from 1.1079 is expected to resume sooner or later. Break of 0.6826 low will target 0.6008 key support level. However, firm break of 0.7849 will indicate that rise from 0.6826 is developing into a medium term rebound, rather than a sideway pattern. In such case, stronger rise should be seen to 55 month EMA (now at 0.8142) and above.
