AUD/USD Daily Outlook

Daily Pivots: (S1) 0.7957; (P) 0.7999; (R1) 0.8065; More.

AUD/USD's break of 0.8054 suggests that rise from 0.7788 has resumed and at this point, intraday bias remains on the upside as long as 0.7931 minor support holds. Recent price actions from 0.8626 are possibly consolidation in the larger rally only. Break of 0.8117 resistance will bring retest of 0.8262 high and above. On the downside, below 0.7931 will turn intraday outlook neutral again and put focus back to 0.7788 low.

In the bigger picture, AUD/USD price actions from 0.6008 are treated as correction to down trend from 0.9849 only and has already met target zone of 0.7802/0.8519. Focus remains on reversal signal as AUD/USD stays in this range. While another rise cannot be ruled out for the moment, strong resistance should be seen as AUD/USD approaches 0.8519 resistance and bring reversal eventually. On the downside, sustained break of 0.7788 support will now be an important signal that whole correction from 0.6008 has completed and will turn focus to 0.7267 key support for confirmation.

However, note that sustained break of 0.8519 resistance will seriously dampen this view and argue that the sharp decline from 0.9849 to 0.6008 was indeed a correction to long term rally from 0.4773 to 0.9849 only. And in such case, stronger medium rise could then be seen to retest 0.9849 high.

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