Daily Pivots: (S1) 0.7766; (P) 0.7825; (R1) 0.7856; More…
AUD/USD’s fall from 0.7915 extends to as low as 0.7750 so far in early US session. Break of 0.7772 minor support confirms completion of the rebound from 0.7712. More importantly, fall from 0.8135 is now resuming. Intraday bias is now on the downside for 0.7712 first. Break will pave the way to 0.7500 key support. On the upside, break of 0.7915 is now needed to indicate near term reversal. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move. It might still extend higher but we’d expect strong resistance from 38.2% retracement of 1.1079 to 0.6826 at 0.8451 to limit upside to bring long term down trend resumption. On the downside, break of 0.7500 support will now be an important signal that such corrective rebound is completed.
