Daily Pivots: (S1) 0.7440; (P) 0.7512; (R1) 0.7549; More…
AUD/USD drops sharply to as low as 0.7452 so far and intraday bias remains on the downside. Corrective rise from 0.7411 should have completed at 0.7676 and larger decline from 0.8135 is resuming. Break of 0.7411 will confirm and target 0.7328 cluster support (61.8% retracement of 0.6826 to 0.8135 at 0.7326). On the upside, above 0.7528 minor resistance will delay the bearish case and bring more consolidations first.
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move. Prior break of 0.7500 key support suggests that such correction is completed at 0.8135. Deeper decline would be seen back to retest 0.6826 low. In case of another rise, 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 eventually.
