The AUD/USD pair has regained some support and it is still in progress and edges higher to the 0.7712 level. Intraday bias remains on the upside at this point. A firm break at the 0.7712 resistance level will confirm a resumption of the whole rebound from the 0.7634 bottom. In such case, the pair would target projection of the 0.7712 level. On the downside, the pair trading below the 0.7634 minor support level will turn intraday bias neutral first. But the pair’s near-term outlook will stay cautiously bullish as long as the 0.7634 support level holds.
In the bigger picture, the current development suggests that the rebound from 0.7634 is developing into a medium-term rise. There is no confirmation of trend reversal yet and we will continue to treat such rebound as a corrective pattern. A further rise is expected but it needs to break above to 50 months EMA or even extend to the 0.7712 level. A break of resistance is needed to confirm completion of the rebound. Otherwise, a further rise is now in favor.
The pair trading with such a strong momentum continues to build but it had only seemed like a matter of time. However, the renewed weakness of the dollar since yesterday has helped to drive the break above the 0.7663 level. This had been the broad projection target from the old range breakout, so the target has been achieved. This means that the pair is trading at its highest since the start of this month when it hit a low of 0.7634. But, the pair trading on the longer term charts is now testing the newfound resistance between the 0.7663 levels. As yet there seems to be little reason not to believe that the Aussie can continue to push higher. Therefore, buying into the intraday dips remains viable. The pair’s daily momentum indicators are all strongly configured.
The pair provides a positive trading after testing the 0.7634 level again yesterday getting a continuous positive support and keeps the chances valid to continue the bullish trend which its next target located at the 0.7663 level.
Therefore, we will continue to suggest the bullish bias in the upcoming sessions unless breaking at the 0.7634 level and holding below. The pair breaching at the targeted level will extend the bullish wave to reach the 0.7712 level as a next main station.
The pair’s expected trading range for today is between the 0.7634 support and 0.7712 resistance levels.
Expected trend for today: Bullish
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This article was originally posted on FX Empire
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