Daily Pivots: (S1) 0.7496; (P) 0.7526; (R1) 0.7550; More…
No change in AUD/USD’s outlook. While upside momentum is a bit unconvincing, further rise is expected this week as long as 0.7452 support holds. Next target is 161.8% projection of 0.7105 to 0.7477 from 0.7169 at 0.7771. On the downside, however, break of 0.7452 minor support will turn bias to the downside for 55 day EMA (now at 0.7390) and possibly below.
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.
