Daily Pivots: (S1) 0.7088; (P) 0.7113; (R1) 0.7156; More…

Intraday bias in AUD/USD remains neutral as consolidation from 0.7005 is extending. Upside of recovery should be limited below 0.7192 support turned resistance to bring another decline. On the downside, break of 0.7005 will resume the fall from 0.7413, which is a correction to rise from 0.5506, to 38.2% retracement of 0.5506 to 0.7413 at 0.6685. However, sustained break of 0.7192 will indicate completed of the pull back and turn bias to the upside for retesting 0.7413.

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In the bigger picture, while rebound from 0.5506 was strong, there is not enough evidence to confirm bullish trend reversal yet. That is, it could be just a corrective inside the long term up trend. Sustained trading back below 55 week EMA (now at 0.6896) will favor the bearish case and argue that the rebound has completed. Focus will be turned back to 0.5506 low. On the upside, break of 0.7413 will extend the rise form 0.5506 to 38.2% retracement of 1.1079 (2011 high) to 0.5506 (2020 low) at 0.7635.

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