AUD/USD recovered last week and hit as high as 0.6657. But such recovery is currently viewed as a corrective move. Hence, we’d expect strong resistance from 0.6662 cluster resistance (38.2% retracement from 0.7031 to 0.6433 at 0.6661) to limit upside. Break of 0.6509 minor support will turn bias to the downside for retesting 0.6433 low. Nevertheless, break of 0.6662 will bring stronger corrective rise to 61.8% retracement at 0.6803.
In the bigger picture, AUD/USD’s decline from 0.8135 (2018 high) is still in progress. It’s part of the larger down trend from 1.1079 (2011 high). Rejection by 55 week EMA affirms medium term bearishness. Next target is 0.6008 (2008 low). Outlook will stay bearish as long as 0.7031 resistance holds, even in case of strong rebound.
In the longer term picture, prior rejection by 55 month EMA maintained long term bearishness in AUD/USD. That is, down trend from 1.1079 (2011 high) is still in progress. Next downside target is 61.8% projection of 1.1079 to 0.6826 from 0.8135 at 0.5507.