Daily Pivots: (S1) 0.5854; (P) 0.5915; (R1) 0.6015; More…
AUD/USD’s corrective rise from 0.5506 extends higher today and outlook is unchanged. While further rise cannot be ruled out, upside should be limited by 61.8% retracement of 0.6684 to 0.5506 at 0.6234 to bring fall resumption. On the downside, break of 0.5699 minor support will turn bias back to the downside for retesting 0.5506 low first. However, sustained break of 0.6234 will dampen immediate bearish case and turn focus back to 0.6684 resistance.
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). 61.8% projection of 1.1079 to 0.6826 from 0.8135 at 0.5507 is already met. Sustained break there will pave the way to 0.4773 (2001 low). On the upside, break of 0.6670 resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.
