Daily Pivots: (S1) 0.6913; (P) 0.6930; (R1) 0.6947; More…
AUD/USD drops to as low as 0.6892 today. 100% projection of 0.7295 to 0.7003 from 0.7205 at 0.6913 was breached but there is no follow through selling yet. Nevertheless, intraday bias remains on the downside for the moment. Sustained trading below 0.6913 should ideally bring downside acceleration to extend the fall from 0.7295 to retest 0.6722 low. On the upside, above 0.6959 minor resistance will turn intraday bias neutral for consolidations. But recovery should be limited by 0.6988/7069 resistance zone to bring fall resumption.
In the bigger picture, with 0.7393 key resistance intact, medium term outlook remains bearish. The decline from 0.8135 (2018 high) is seen as resuming long term down trend from 1.1079 (2011 high). Decisive break of 0.6826 (2016 low) will confirm this bearish view and resume the down trend to 0.6008 (2008 low). However, firm break of 0.7393 will argue that fall from 0.8135 has completed. And corrective pattern from 0.6826 has started the third leg, targeting 0.8135 again.
