AUD/USD Mid-Day Outlook

Daily Pivots: (S1) 0.9667; (P) 0.9730; (R1) 0.9774; More

AUD/USD's break of 0.9698 minor support indicates that correction from 0.9849 has resumed. AUD/USD drops to as low as 0.9620 so far and further fall could still be seen as long as 0.9735 minor resistance holds. Nevertheless, downside is expected to be contained well above 0.9475 support and bring rally resumption. On the upside, above 0.9735 minor resistance will turn intraday outlook neural first. Further break of 0.9792 resistance will indicate recent rally has likely resumed for 1.0000 psychological resistance.

In the bigger picture, the whole rally from 0.8512 is still in progress. Also, note that the break of near term trend line resistance and break out of bearish divergence conditions in daily MACD and RSI are both reaffirming the underlying strength in AUD/USD. Regardless of the structure, such rally is treated as part of the long term up trend from 0.4773 (01 low) and is still 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. On the downside, break of 0.9475 support is needed to be the first signal that a short term top is formed. Otherwise, recent uptrend is still expected to extend further.

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