Daily Pivots: (S1) 0.7071; (P) 0.7121; (R1) 0.7179; More…
AUD/USD’s break of 0.7158 minor resistance argues that a short term bottom might be formed at 0.7061, on bullish convergence condition in 4 hour MACD. Intraday bias is back on the upside for stronger rebound, possibly towards 55 day EMA (now at 0.7318). In case of another fall, we’d look for support from 0.6991/7051 key support zone to bring rebound. But sustained break there will carry larger bearish implications.
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. However, sustained break of 0.6991 will argue that the whole medium term trend has probably reversed. Deeper fall would be seen to 61.8% retracement at 0.6461.
