Daily Pivots: (S1) 0.7214; (P) 0.7248; (R1) 0.7274; More…
AUD/USD’s drops to as low as 0.7201 so far and met 61.8% projection of 0.7676 to 0.7309 from 0.7452 at 0.7225 already. Intraday bias remains on the downside for next target at 100% projection at 0.7085. On the upside, above 0.7251 minor resistance will turn intraday bias and bring consolidation. But recovery should be limited well below 0.7452 resistance to bring fall resumption.
In the bigger picture, medium term rebound from 0.6826 (2016 low) is seen as a corrective move that should be completed at 0.8135. Fall from there should now have a test on 0.6826. There is prospect of resuming long term down trend from 1.1079 (2011 high). But we’ll look at downside momentum to assess at a later stage. On the upside, break of 0.7452 resistance is needed to indicate medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.
