AUD/USD Daily Outlook

Daily Pivots: (S1) 0.5983; (P) 0.6199; (R1) 0.6324; More

AUD/USD's fall extends further to as low as 0.6705 before recovering mildly. At this point, intraday bias remains on the downside as long as 0.6419 minor resistance holds and further fall should be seen to retest 0.6008 low. On the upside, above 0.6419 will turn intraday outlook neutral again. Further break of 0.6694 will indicate that fall from 0.7014 has completed and more importantly, this will suggests that consolidation from 0.6008 is still in progress for another rise to 0.7014 or above before completion.

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.

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