Daily Pivots: (S1) 0.7212; (P) 0.7230; (R1) 0.7258; More…
With the current recovery, a temporary low is in place at 0.7201 in AUD/USD. Intraday bias is turned neutral for some consolidations first. Upside should be limited by 0.7346 support turned resistance for fall resumption. On the downside, below 0.7201 will extend the larger decline from 0.8135, to 100% projection of 0.7676 to 0.7309 from 0.7452 at 0.7085.
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.
