Daily Pivots: (S1) 0.7369; (P) 0.7390; (R1) 0.7423; More…

AUD/USD’s rise form 0.7105 short term bottom is still in progress and intraday bias remains on the upside. Sustained break of 0.7425 resistance will argue that whole correction from 0.8006 has completed at 0.7105 already, just above 0.6991/7051 support zone. Stronger rise would be seen to 0.7530 support turned resistance for confirmation. On the downside, below 0.7283 minor support will turn bias back to the downside for retesting 0.7105 low instead.

In the bigger picture, rise from 0.5506 medium term bottom could have completed at 0.8006, after failing 0.8135 key resistance. Correction from there could target 0.6991 cluster support (38.2% retracement of 0.5506 to 0.8006 at 0.7051). We’d look for strong support from there to bring rebound. However, sustained break of this level would argue that the whole medium term trend has indeed reversed. Deeper decline would be seen to 61.8% retracement at 0.6461.

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