Daily Pivots: (S1) 0.7003; (P) 0.7037; (R1) 0.7063; More…
AUD/USD’s break of 0.7005 support suggests resumption of the correction fall form 0.7413. Intraday bias is now on the downside for 38.2% retracement of 0.5506 to 0.7413 at 0.6685. For now, break of 0.7157 resistance is needed to indicate short term bottoming. Otherwise, further decline is in favor in case of recovery.
In the bigger picture, while rebound from 0.5506 was strong, there is not enough evidence to confirm bullish trend reversal yet. That is, it could be just a correction inside the long term down trend. Sustained trading back below 55 week EMA (now at 0.6927) will favor the bearish case and argue that the rebound has completed. Focus will be turned back to 0.5506 low. On the upside, break of 0.7413 will extend the rise from 0.5506 to 38.2% retracement of 1.1079 (2011 high) to 0.5506 (2020 low) at 0.7635.
