Daily Pivots: (S1) 0.7129; (P) 0.7157; (R1) 0.7198; More…
Immediate focus is now on 0.7172 resistance in AUD/USD. Sustained break there should confirm short term bottoming at 0.6992. More importantly, whole corrective fall from 0.8006 might be finished too after defending 0.6991 key structural support. Stronger rise should then be seen to 55 day EMA (now at 0.7275). Firm break there will target 0.7555 resistance to confirm this bullish case. On the downside, however, firm break of 0.6991 will carry larger bearish implication and extend the down trend from 0.8006.
In the bigger picture, focus stays on 0.6991 key support level. Strong rebound from there will argue that up trend from 0.5506 is still intact for another rise through 0.8006 at a later stage. However, sustained break of 0.6991 will argue that the up trend is over, after rejection by 0.8135 long term resistance. Deeper decline would then be seen back to 61.8% retracement of 0.5506 to 0.8006 at 0.6461.
