Daily Pivots: (S1) 0.7114; (P) 0.7178; (R1) 0.7214; More…
AUD/USD drops to as low as 0.7105 so far today and met 161.8% projection of 0.8006 to 0.7530 from 0.7890 at 0.7120 already. There is no sign of bottoming yet and further fall is expected. But we’d look for strong support from 0.6991/7051 cluster support to bring rebound. On the upside break of 0.7288 support turned resistance will indicate short term bottoming, and turn bias back to the upside for stronger rebound.
In the bigger picture, rise from 0.5506 medium term bottom could have completed at 0.8006, after failing 0.8135 key resistance. Correction from there could target 0.6991 cluster support (38.2% retracement of 0.5506 to 0.8006 at 0.7051). We’d look for strong support from there to bring rebound. However, sustained break of this level would argue that the whole medium term trend has indeed reversed.
