AUD/USD Daily Outlook

Daily Pivots: (S1) 0.6155; (P) 0.6241; (R1) 0.6406; More

AUD/USD's recovery from 0.6075 is in progress but after all upside is still limited below 0.6594 minor resistance. Intraday outlook remains neutral for the moment. Some more recovery could be seen but another fall is in favor as long as upside is limited below 0.6594 resistance. Firm break of 0.6008 will indicate medium term down trend has resumed. On the upside, however, above 0.6594 will suggests that recent consolidation is still in progress and another rise to above 0.7014 could be seen 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.

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