Daily Pivots: (S1) 0.6570; (P) 0.6595; (R1) 0.6610; More...
AUD/USD retreated ahead of 0.6624 resistance and intraday bias is turned neutral first. Some consolidations could be seen but further rally is expected as long as 0.6559 resistance turned support holds. On the upside, firm break of 0.6624 will resume larger rally from 0.5913 to 0.6713 fibonacci level. However, sustained break of 0.6559 will turn bias to the downside and extend the corrective pattern from 0.6624 with another falling leg.
In the bigger picture, there is no clear sign that down trend from 0.8006 (2021 high) has completed. Rebound from 0.5913 is seen as a corrective move. While stronger rally cannot be ruled out, outlook will remain bearish as long as 38.2% retracement of 0.8006 to 0.5913 at 0.6713 holds. Nevertheless, considering bullish convergence condition in W MACD, even in case of another fall through 0.5913, downside should be contained above 0.5506 (2020 low).
