Daily Pivots: (S1) 0.7347; (P) 0.7400; (R1) 0.7427; More…
AUD/USD drops to as low as 0.7279 so far today. The break of 0.7309 confirms resumption of whole decline from 0.8135. Intraday bias is back on the downside. Current fall should target 61.8% projection of 0.7676 to 0.7309 from 0.7452 at 0.7225 first. Break will target 100% projection at 0.7085 next. On the upside, above 0.7347 minor resistance will turn intraday bias neutral first. But outlook will stay bearish as long as 0.7452 resistance holds.
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move that should be completed at 0.8135. Deeper decline would be seen back to retest 0.6826 low. The break of 0.7328 cluster support (61.8% retracement of 0.6826 to 0.8135 at 0.7326) affirms this bearish view. On the upside, break of 0.7452 resistance might indicate medium term bottoming. But we’ll continue to favor the bearish view as long as 0.7676 resistance holds.
