Technical outlook:
AUDUSD dropped to 0.6915 during the Asian session on Wednesday. The currency rallied through 0.6995 levels on Tuesday before finding resistance and pulling back. Intraday support should be seen just below the 0.6900 mark as bulls prepare to come back in control. Prices should stay above 0.6850 to keep the near-term bullish structure intact.
AUDUSD might be unfolding a larger degree corrective wave since printing the 0.6830 lows earlier. The minimum expectation for the potential standard correction to complete is to rise above 0.7280, the previous swing high. Also, note that the Fibonacci 0.618 retracement of the earlier downswing between 0.7660 and 0.6830 is passing through the 0.7340-50 area.
A high probability remains for prices to reverse lower again if bulls manage to push through the 0.7345-0.7440 zone. On the other side, if prices continue pushing higher and break above 0.7660 initial resistance, it could indicate a potential trend reversal against the 0.6830 mark. Either way, traders might remain inclined to hold long positions for now.
Trading plan:
Potential rally through 0.7440 against 0.6800
Good luck!
