Daily Pivots: (S1) 0.7662; (P) 0.7684; (R1) 0.7698; More…
No change in AUD/USD’s outlook. With 0.7784 minor resistance intact, further decline is expected. Current fall fro 0.8135 would target a test on 0.7500 key support level. At this point, we’ll stay cautious on strong support from there to bring rebound. On the upside, however, break of 0.7784 will suggest near term reversal and turn bias to the upside for 0.7915 resistance first.
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. In that case, AUD/USD would be heading back to 0.6826 low in medium term.
