Daily Pivots: (S1) 0.7155; (P) 0.7193; (R1) 0.7213; More…
AUD/USD’s break of 0.7128 support dampens our original bullish view and indicates that corrective rebound from 0.6992 has completed at 0.7313. Intraday bias is back on the downside for retesting 0.6991/2 support zone. Further break there will resume larger down trend from 0.8006, and carries larger bearish implication. Next target will be 100% projection of 0.7555 to 0.6992 from 0.7313 at 0.6750. For now, risk will stay on the downside as long as 0.7313 resistance holds, in case of recovery.
In the bigger picture, strong rebound from 0.6991 key structural support will retain medium term bullishness. That is, whole up trend from 0.5506 is still in progress. Firm break of 0.7555 resistance will target 0.8006 high and above. However, sustained break of 0.6991 will argue that the whole up trend from 0.5506 might be finished at 0.8006, after rejection by 0.8135 long term resistance. Deeper decline would then be seen back to 61.8% retracement of 0.5506 to 0.8006 at 0.6461.
