AUD/USD’s correction from 0.8006 extended last week and hit as low as 0.7621. Further decline cannot be ruled out this week. But overall outlook will stay bullish as long as 0.7563 support holds. Break of 0.7837 minor resistance will bring retest of 0.8006 high. However, firm break of 0.7563 will indicate that deeper correction is underway, back towards 0.7413 resistance turned support.
In the bigger picture, whole down trend from 1.1079 (2001 high) should have completed at 0.5506 (2020 low) already. Rise from 0.5506 could either be the start of a long term up trend, or a corrective rise. Reactions to 0.8135 key resistance will reveal which case it is. But in any case, medium term rally is expected to continue as long as 0.7413 resistance turned support holds.
In the longer term picture, 0.5506 is a long term bottom, on bullish convergence condition in monthly MACD. Focus is now back on 0.8135 structural resistance. Decisive break there will raise the chance that rise from 0.5506 is an impulsive up trend. Next target should be 61.8% retracement at 0.8950 and above. Though, rejection by 0.8135 will keep the case of medium to long term sideway consolidation open.
