Daily Pivots: (S1) 0.7005; (P) 0.7041; (R1) 0.7067; More…
AUD/USD dropped to as low as 0.7016 but couldn’t sustain below 0.7020 key support yet. At this point, further fall is expected as long as 0.7077 minor resistance holds. Sustained break of 0.7020 will resume larger decline from 0.8135 for 0.6826 key support. However, rebound from current level and break of 0.7077 will suggest short term bottoming. Intraday bias will be turned back to the upside for 55 day EMA (now at 0.7191).
In the bigger picture, price actions from 0.7020 are corrective in nature. In case such corrective pattern extends, upside should be limited by 38.2% retracement of 0.8135 to 0.7020 at 0.7446 to bring down trend resumption. Firm break of 0.7020 will extend medium term decline from 0.8135 to retest 0.6826 (2016 low).
