Daily Pivots: (S1) 0.7163; (P) 0.7173; (R1) 0.7183; More…
Today’s sharp retreat suggests temporary topping at 0.7192 in AUD/USD. Intraday bias is turned neutral first. Further rise remains in favor with 0.7115 minor support intact. On the upside, above 0.7192 will target 0.7206 resistance first. Break will likely resume larger rebound from 0.6722 through 0.7295 resistance. On the downside, though, break of 0.7115 minor support will turn intraday bias back to the downside for 0.7003/7052 support zone instead.
In the bigger picture, break of medium term channel resistance is the first sign of bullish reversal. But there is no confirmation yet. As long as 0.7393 resistance holds, larger fall from 0.8135 is still expected to resume later. Such decline is seen as resuming long term down trend from 1.1079 (2011 high). Decisive break of 0.6826 (2016 low) will confirm this bearish view and resume the down trend to 0.6008 (2008 low). However, firm break of 0.7393 will argue that fall from 0.8135 has completed. And corrective pattern from 0.6826 has started the third leg, targeting 0.8135 again.
