AUD/USD dipped to as low 1.0052 but lost downside momentum and recovered. Fall from 1.0752 is viewed as a correction only. Thus, even though another fall cannot be ruled out, downside is expected to be contained by 61.8% retracement of 0.9387 to 1.0752 at 0.9908 to conclude the correction and bring rally resumption. On the upside, above 1.0444 minor resistance will argue that such correction is likely finished and will flip bias back to the upside for retesting 1.0752 first. Break should send AUD/USD through 1.1079 record high.

In the bigger picture, the medium term outlook in AUD/USD remains bullish as up trend from 2008 low of 0.6008 is expected to extend further higher. Break of 1.1079 will target 61.8% projection of 0.8066 to 1.1079 from 0.9387 at 1.1249 next. In any case, we'll stay bullish as long as 0.9387 support holds and expect an eventual upside breakout.

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. At this point, there is still prospect for a lengthier medium term consolidation. But there is no indication of long term reversal yet. We'll stay bullish as long as 0.9387 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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