Daily Pivots: (S1) 0.7124; (P) 0.7135; (R1) 0.7152; More…
AUD/USD’s break of 0.7116 minor support suggests that rebound from 0.6722 has completed at 0.7235 already. Intraday bias is turned to the downside for 38.2% retracement of 0.6722 to 0.7235 at 0.7039 first. Break will target 61.8% retracement at 0.6918 and below. On the upside, however, break of 0.7166 minor resistance will turn bias back to the upside and will likely extend the rebound from 0.6722.
In the bigger picture, the failure to sustain below 0.6826 (2016 low) suggests that the long term down trend is not ready to resume yet. But prior rejection by 55 week EMA indicates underlying medium term bearishness in the pair. Outlook will also stay bearish as long as 0.7393 resistance holds. On the downside, sustained break of 0.6826 will target 0.6008 (2008 low).
