Daily Pivots: (S1) 0.7097; (P) 0.7115; (R1) 0.7131; More…
No change in AUD/USD’s outlook. As long as 0.7210 resistance holds, deeper decline is expected. Current down trend from 0.8135 should extend to 161.8% projection of 0.7452 to 0.7201 from 0.7361 at 0.6955. Break will target key support level at 0.6826. On the upside, break of 0.7210 will indicate short term bottoming and bring lengthier consolidation before staging another fall.
In the bigger picture, rebound from 0.6826 (2016 low) is seen as a corrective move that should be completed at 0.8135. Fall from there would extend to have a test on 0.6826. There is prospect of resuming long term down trend from 1.1079 (2011 high). Current downside momentum as seen in daily and weekly MACD support this bearish case. Firm break of 0.6826 will target 0.6008 key support next (2008 low). On the upside, break of 0.7361 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will remain bearish even in case of strong rebound.
