Daily Pivots: (S1) 0.7043; (P) 0.7090; (R1) 0.7120; More…
AUD/USD’s fall from 0.7660 resumed by breaking through 0.7029 temporary low. Intraday bias is back on the downside. As noted before, such decline is seen as the third third leg of the corrective pattern from 0.8006. Firm break of 0.6955 low will confirm this bearish case and target 0.6756 medium term fibonacci level next. For now, outlook will stay bearish as long as 0.7265 resistance holds, in case of recovery.
In the bigger picture, price actions from 0.8006 are seen as a corrective pattern to rise from 0.5506 (2020 low). Fall from 0.7660 should be the third leg of this pattern. Break of 0.6966 will target 50% retracement of 0.5506 to 0.8006 at 0.6756. On the upside, break of 0.7660 will revive that case that the correction has already completed at 0.6966.
