Daily Pivots: (S1) 0.7342; (P) 0.7362; (R1) 0.7400; More…
AUD/USD’s rise resumed after brief retreat and intraday bias is back on the upside. Current rally from 0.7169 should target 0.7477 resistance first. Sustained break there will argue that larger decline from 0.8006 has completed and turn near term outlook bullish. On the downside, below 0.7302 minor support will turn bias back to the downside for 0.7169 instead.
In the bigger picture, with 0.6991 cluster support (38.2% retracement of 0.5506 to 0.8006 at 0.7051) intact, we’re seeing price action from 0.8006 as a correction only. That is, up trend from 0.5506 low would resume after the correction completes. In that case, main focus will be 0.8135 key resistance (2018 high). Sustained break there will carry larger bullish implications. However, sustained break of 0.6991 will argue that the whole medium term trend has indeed reversed.
