AUD/USD edged higher to 0.7223 last week but quickly retreated. Initial bias is neutral this week first. On the downside, break of 0.7089 will bring another test on 0.6991 key support. Sustained break there will carry larger bearish implication. On the upside, above 0.7223 will resume the rebound from 0.6992 to 55 day EMA (now at 0.7248).
In the bigger picture, strong rebound from 0.6991 key structural support will retain medium term bullishness. That is, whole up trend from 0.5506 is still in progress. Firm break of 0.7555 resistance will target 0.8006 high and above. However, sustained break of 0.6991 will argue that the whole up trend from 0.5506 might be finished at 0.8006, 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.
In the longer term picture, focus remains on 0.8135 structural resistance. Decisive break there will argue that rise from 0.5506 is developing into a long term up trend that reverses whole down trend from 1.1079 (2011 high). However, rejection by 0.8135 will keep long term outlook neutral at best.
