AUD/USD stayed in range below 0.6444 last week and outlook is unchanged. Initial bias remains neutral first and another rise could be seen as long as 0.6253 support holds. Break of 0.6444 will resume the rebound form 0.5506 to 0.6670 key resistance next. Nevertheless, on the downside, break of 0.6213 resistance turned support will argue that such rebound has completed. Intraday bias will be turned back to the downside for 0.5979 support for confirmation.
In the bigger picture, there is no clear sign of trend reversal yet. The larger down trend from 1.1079 (2011 high) is still in favor to extend. 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 support turned resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.
In the longer term picture, down trend from 1.1079 (2011) is still in progress. It’s a bit early to just the depth of the down trend. But sustained break of 61.8% projection of 1.1079 to 0.6826 from 0.8135 at 0.5507 could pave the way to 100% projection at 0.3882.
