AUD/USD Daily Outlook

Daily Pivots: (S1) 0.7919; (P) 0.8124; (R1) 0.8249; More

AUD/USD dives further to as low as 0.7929 before recovering mildly. At this point, intraday bias remains on the downside as long as 0.8171 minor resistance holds. Break of 0.8057 support confirms that rebound from 0.7802 has completed. Retest of this low should now be seen and break will indicate sharp fall from 0.9849 has resumed for next target of 0.7675 support. On the upside, though, above 0.8171 will turn intraday outlook neutral first.

In the bigger picture, a medium term top is at least in place at 0.9849 with bearish divergence condition in weekly MACD and RSI. While some corrective rebound might be seen in short term, the impulsive nature of the decline from 0.9849 indicates that such fall should extend further after completing the consolidation. Sustained trading below 0.7802 will pave the way for deeper medium term decline to 61.8% retracement of 0.4773 to 0.9849 at 0.6712. On the upside, firm break of mentioned 0.8812 cluster resistance is needed before considering that the fall from 0.9849 has completely finished.

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