Daily Pivots: (S1) 0.7665; (P) 0.7687; (R1) 0.7723; More…
AUD/USD recovers strongly today and reaches as high as 0.7737 so far. But still, it’s staying in range between 0.7642 and 0.7784 and intraday bias remains neutral. As long as 0.7784 holds, near term outlook stays bearish for another decline. On the downside, break of 0.7642 will turn bias to the downside to extend recent fall from 0.8135 to retest 0.7500 key support level. On the upside, however, break of 0.7784 will suggest near term reversal and turn bias to the upside for 0.7915 resistance first.
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move. It might still extend higher but we’d expect strong resistance from 38.2% retracement of 1.1079 to 0.6826 at 0.8451 to limit upside to bring long term down trend resumption. On the downside, break of 0.7500 support will now be an important signal that such corrective rebound is completed. In that case, AUD/USD would be heading back to 0.6826 low in medium term.
