Daily Pivots: (S1) 0.7339; (P) 0.7360; (R1) 0.7388; More…
A temporary top is in place at AUD/USD at 0.7381 and intraday bias is turned neutral first. As long as 0.7295 minor support holds, rebound from 0.7201 short term bottom could still extend high. But we’d expect upside to be limited by 0.7425 resistance to bring larger down trend resumption. On the downside, below 0.7295 minor support will argue that the rebound is finished and turn bias back to the downside for retesting 0.7201 low.
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.
