AUD/USD Mid-Day Outlook

Daily Pivots: (S1) 0.9439; (P) 0.9490; (R1) 0.9542; More

After making new high at 0.9541, AUD/USD's retreat extends further today and break of 0.9437 minor support, with 4 hours MACD dragged below signal line indicates that an intraday top is already in place after failing 61.8% projection of 0.8512 to 0.9496 from 0.8953 at 0.9561. Outlook is turned neutral for the moment and deeper pull back could be seen to 4 hours 55 EMA (now at 0.9383. Nevertheless, pull back should be contained well above 0.9271 support and bring rally resumption.

In the bigger picture, correction from 0.9496 has likely completed with three wave down to 0.8953, above mentioned 0.8873 cluster support. Break of 0.9496 high indicates that medium term up trend has resumed. As discussed before, the whole up trend from 0.4773 (01 low) is expected to extend further to next medium term target of 100% projection of 0.4773 to 0.8008 from 0.6773 at 1.0008 which overlaps with parity. Break of 0.9271 support will argue that rise from 0.8953 has made a short term top and bring deeper correction. But medium term outlook will still remain bullish as long as .8953 support holds.

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