Daily Pivots: (S1) 0.6511; (P) 0.6547; (R1) 0.6600; More…
AUD/USD’s strong rebound suggests that corrective pattern from 0.6442 is extending with another leg. While further rise cannot be ruled out, upside should be limited by 38.2% retracement of 0.6877 to 0.6442 at 0.6605. Break of 0.6476 support will argue that fall from 0.6870 is ready to resume through 0.6442 low. However, sustained break of 0.6605 will dampen this bearish view and bring stronger rise to 61.8% retracement at 0.6707 instead.
In the bigger picture, price actions from 0.6169 (2022 low) are seen as a medium term corrective pattern to the down trend from 0.8006 (2021 high). Fall from 0.7156 (2023 high) is seen as the second leg, which might still be in progress. Overall, sideway trading could continue in range of 0.6169/7156 for some more time. But as long as 0.7156 holds, an eventual downside breakout would be mildly in favor.
