Daily Pivots: (S1) 0.7309; (P) 0.7326; (R1) 0.7358; More…
AUD/USD’s rebound from 0.7201 short term bottom extends to as high as 0.7358 so far today. 0.7346 support turned resistance is broken without sign of topping yet. Intraday bias stays on the upside for 0.7452 key resistance next. On the downside, below 0.7295 minor support will argue that the rebound is finished and turn bias back to the downside.
In the bigger picture, rebound from 0.6826 (2016 low) is seen as a corrective move that should be completed at 0.8135. Fall from there would extend to have a test on 0.6826. There is prospect of resuming long term down trend from 1.1079 (2011 high). But we’ll look at downside momentum to assess at a later stage. On the upside, break of 0.7452 resistance, however, will indicate medium term bottoming, on bullish convergence condition in daily MACD. In that case, a correction should be seen first, with stronger rebound would be seen to 38.2% retracement of 0.8135 to 0.7201 at 0.7558. The down trend from 0.8135 will resume after the correction completes.
