Daily Pivots: (S1) 0.7654; (P) 0.7680; (R1) 0.7709; More…
AUD/USD’s consolidation from 0.7642 temporary low is still in progress and intraday bias stays neutral. Stronger recovery might be seen. But after all, near term outlook remains bearish as long as 0.7784 resistance holds. On the downside, break of 0.7642 to will bias to the downside to extend recent fall from 0.8135 to retest 0.7500 key support level. 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.
