AUD/USD recovered after falling to 0.7120 and intraday bias is turned neutral first. Price action from 0.7207 is seen as correcting the rise from 0.6864. Risk will stay on the downside as long as 0.7207 holds. Below 0.7120 will target 38.2% retracement of 0.6864 to 0.7207 at 0.7076. Nevertheless, firm break of 0.7207 will resume rise from 0.6864 to retest 0.7277 high.
In the bigger picture, price action from 0.7277 medium term top is seen as developing into a corrective pattern to rise from 0.5913 only. While another fall cannot be ruled out, downside should be contained by 38.2% retracement of 0.5913 to 0.7277 at 0.6756 to bring rebound. Consolidations would continue below 0.7277 for a while, before an eventual upside breakout. Firm break of 0.7277 will target 0.8006 (2021 high).
