Despite diving to as low as 0.9387 last week, AUD/USD drew strong support from 0.9404 key level and rebounded. A short term bottom should be formed and further rise is in favor initially this week to 0.9984 resistance first. Break there will extend the rebound toward near term channel resistance (now at 1.0449). On the downside, below 0.9621 will turn bias neutral and bring deeper retreat. But we won't turn bearish again before decisive break of 0.9387 low.

In the bigger picture, focus remains on 0.9404 key support level. As long as this support holds, price actions from 1.1079 is treated as a correction, or part of a consolidation pattern to the up trend from 0.6008 only. And, in such case, AUD/USD should still made another high above 1.1079 before forming an important top. However, sustained break of 0.9404 will indicate that rise from 0.6008 is already finished and would possibly bring deeper fall towards 61.8% retracement of 0.6006 to 1.1079 at 0.7945.

In the longer term picture, whole up trend from 0.4773 (01 low) extended to a point where it just missed 100% projection of 0.4773 to 0.9849 from 0.6008 at 1.1084. While AUD/USD might be reversing in medium term, there is no signal of long term topping yet. We'd stay bullish as long as 0.9404 support holds and expect an eventual break of 1.1084 to 138.2% projection at 1.3023, which is close to 1.3 psychological level, in the long term.

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