Daily Pivots: (S1) 0.7395; (P) 0.7415; (R1) 0.7431; More…
Upside momentum in AUD/USD is bit unconvincing as seen in 4 hour MACD. But further rally is expected as long as 0.7372 minor support holds. Current rise from 0.5506 target 0.7635 key long term fibonacci level. On the downside, however, break of 0.7351 will indicate short term topping and turn bias back to the downside for pull back.
In the bigger picture, the sustained trading above 55 week EMA (now at 0.6978) is a sign of medium term bullishness. Nevertheless, AUD/USD will still need to overcome 38.2% retracement of 1.1079 (2011 high) to 0.5506 (2020 low) at 0.7635 decisively to indicate completion of long term down trend from 1.1079. Otherwise, current rebound from 0.5506 could still turn out to be a correction in the long term down trend.
