Daily Pivots: (S1) 0.7272; (P) 0.7299; (R1) 0.7321; More…
AUD/USD retreats notably after failing to sustain above 0.7314 resistance. Intraday bias is turned neutral first. For now, further rally is expected as long as 0.7164 support holds. On the upside, sustained break of 0.7314 will indicate medium term reversal. Further rally should be seen to 38.2% retracement of 0.8135 to 0.7020 at 0.7446 next. Nevertheless, failure to sustain above 0.7314, and break of 0.7164 support will retain bearishness and turn bias back to the downside for retesting 0.7020 low.
In the bigger picture, AUD/USD’s decline from 0.8135 could have completed at 0.7020 already, ahead of 0.6826 key support (2016 low). Break of 0.7314 will confirm and bring strong rebound. But for now, we’d expect strong resistance from 0.7500 support turned resistance to limit upside. Medium term fall from 0.8135 should extend to take on 0.6826 low at a later stage.
