AUD/USD’s sturdy rally final week confirmed quick time period bottoming at 0.6269. Preliminary bias stays on the upside this week with concentrate on 0.6510 cluster resistance (38.2% retracement of 0.6894 to 0.6269 at 0.6508). Sustained break of 0.6510 will argue that entire decline from 0.7156 is perhaps accomplished with three waves right down to 0.6269. Stronger rally ought to then be seen to medium time period development line resistance (now at 0.6708). In the meantime, rejection by 0.6510 will retain close to time period bearishness.
Within the larger image, there isn’t any affirmation that down development from 0.8006 (2021 excessive) has accomplished. Whereas present rebound from 0.6269 would possibly lengthen increased, it may very well be the third leg of a corrective sample from 0.6169 (2022 low) solely. For now, medium time period bearishness will stay so long as 0.6894 resistance holds.
In the long run image, whereas fall from 0.8006 would possibly lengthen decrease, the construction argues that it’s merely a correction to rise from 0.5506 (2020 low). In case of draw back extension, sturdy assist ought to emerge above 0.5506 to convey reversal. However nonetheless, momentum of the subsequent transfer can be monitored to regulate the evaluation.
