AUD/USD Mid-Day Outlook

Daily Pivots: (S1) 0.9296; (P) 0.9347; (R1) 0.9446; More

AUD/USD turns sideway after rally from 0.9031 extended to 0.9401, touching 61.8% projection of 0.9031 to 0.9345 from 0.9205 at 0.9399. Nevertheless, intraday bias remains on the upside as long as 0.9132 minor support holds. As discussed before, correction from 0.9496 has completed at 0.8953 already. Further rally is now expected to retest 0.9496 high. On the downside, below 0.9312 will turn intraday outlook neutral first. But another rally is still in favor as long as 0.9205 support holds.

In the bigger picture, firstly, with 0.8873 cluster support still holds, rise from 0.8512 is still expected to extend further. Decisive break of 0.9496 will confirm that medium term up trend has resumed for next upside target of parity. Meanwhile, sustained trading below 0.8873 structural support will open up a few bearish possibilities. On the one hand, 0.9496 could represent an important medium term top. On the other hand, rise from 0.8512 could just be part of a wider range consolidation that started at 0.9398, with one more falling leg to follow. In either case, deeper decline should be seen to 0.8512 support first.

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