AUD/USD Daily Outlook

Daily Pivots: (S1) 0.6284; (P) 0.6439; (R1) 0.6520; More

AUD/USD's break of 0.6340 minor support indicates that fall from 0.7014 is resuming. Also it revives the case that corrective rise from 0.6008 has completed. At this point, intraday bias remains on the downside as long as 0.6594 minor resistance holds and retest of 0.6008 should be seen. On the upside, though, above 0.6594 will turn intraday outlook neutral again and argues that more choppy sideway trading might be seen.

In the bigger picture, whole fall from 0.9849 has likely completed the five wave sequence already, with the fifth wave ended at 0.6008. However, note that the impulsive nature of the fall from 0.9849 to 0.6008 indicate that price actions from 0.6008 is developing into correction/consolidation only. The long term down trend is still expected to resume after completing the consolidation. Sustained break of 0.6008 will indicate that the down trend from 0.9849 has resumed for at least another five wave medium term decline, targeting 0.4773 (01 low).

But, note that as long long as 0.6008 low holds, consolidation from could still extend further. Above 0.7014 will target 38.2% retracement of 0.9849 to 0.6008 at 0.7475 before completing the consolidation.

Subscribe to our daily and mid-day newsletter to get this report delivered to your mail box