Daily Pivots: (S1) 0.6626; (P) 0.6654; (R1) 0.6697; More…
AUD/USD’s rally from 0.5506 continues today and hits as high as 0.6742 so far. Intraday bias bias remains on the upside but we’d continue to look for topping signal. Bearish divergence condition in 4 hour MACD is a sign of loss of upside momentum. AUD/USD will also face 55 week EMA (now at 0.6702) and then 0.6826 (2016 low). On the downside, break of 0.6567 minor support will indicate short term topping and turn bias back to the downside. However, any upside re-acceleration could take the pair further to 0.7031 resistance next.
In the bigger picture, while the rebound from 0.5506 is stronger than expected, we’re seeing it as corrective the fall from 0.8135 only (2018 high) to 0.5506. Strong resistance should be seen from 0.6826 (2016 low) to limit upside. However, sustained break of 0.6826 will argue that rise from 0.5506 is at least correcting the fall from 1.1079 (2011 high). Stronger rally would be seen to 55 month EMA (now at 0.7365).
