AUD/USD Daily Outlook

Daily Pivots: (S1) 0.6342; (P) 0.6479; (R1) 0.6627; More

AUD/USD fails to take out 0.6594 minor resistance and retreats mildly. Intraday outlook remains neutral for the moment. On the upside, break of 0.6594 resistance will suggests consolidation from 0.6008 is still in progress and another rise to above 0.7014 could be seen before completing consolidation from 0.6008. On the downside, below 0.6452 will flip intraday bias back to the downside for retesting 0.6008 low and decisive break there will confirm recent down trend has resumed.

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