AUD/USD’s rebound from 0.6903 extended higher today. Overall, however, further decline is expected as long as 0.7038 resistance holds. Below 0.6948 minor support will bring retest 0.6903 low first. However, decisive break of 0.7038 will argue that fall from 0.7237 has already completed.
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. While deeper pullback 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. However, sustained break of 0.6756 will raise the chance of larger bearish reversal.
