Daily Pivots: (S1) 0.7176; (P) 0.7193; (R1) 0.7206; More…
AUD/USD’s break of 0.7169 support affirms the case that larger decline from 0.8006 is resuming. Intraday bias remains on the downside for 0.7105 support first, and then 0.6991 cluster support. On the upside, break of 0.7208 minor resistance will delay the bearish case and turn intraday bias neutral first.
In the bigger picture, with 0.6991 cluster support (38.2% retracement of 0.5506 to 0.8006 at 0.7051) intact, we’re seeing price action from 0.8006 as a correction only. That is, up trend from 0.5506 low would resume after the correction completes. In that case, main focus will be 0.8135 key resistance (2018 high). Sustained break there will carry larger bullish implications. However, sustained break of 0.6991 will argue that the whole medium term trend has indeed reversed.
