Daily Pivots: (S1) 0.7035; (P) 0.7107; (R1) 0.7144; More…
AUD/USD’s decline accelerates to as low as 0.7038 today and intraday bias remains on the downside. Current fall is seen as correcting whole rise from 0.5506 to 0.7413. Deeper decline would be seen to 38.2% retracement of 0.5506 to 0.7413 at 0.6685. On the upside, break of 0.7192 support turned resistance is needed to indicate completion of the fall. Otherwise, near term outlook will now stay bearish even in case of recovery.
In the bigger picture, rebound from 0.5506 medium term bottom is seen as correcting whole long term down trend from 1.1079 (2011 high). There is no confirmation that it’s completed. Another rise could still be seen to 38.2% retracement of 1.1079 (2011 high) to 0.5506 (2020 low) at 0.7635 before topping. However, sustained trading below 55 week EMA (now at 0.6888) will raise the chance that it’s finished and turn focus back to 0.5506 low.
