Daily Pivots: (S1) 0.7335; (P) 0.7352; (R1) 0.7371; More…
AUD/USD’s sharp decline and break of 0.7295 minor support suggests that rebound from 0.7201 has completed at 0.7381 already. Intraday bias is turned back to the downside for retesting 0.7201 short term bottom. Firm break there will resume larger down trend from 0.8135. In case of anther recovery as consolidation from 0.7201 extends, we’d expect upside to be limited by 0.7425 resistance to bring larger down trend resumption eventually.
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). But we’ll look at downside momentum to assess at a later stage. On the upside, break of 0.7452 resistance, however, will indicate medium term bottoming, on bullish convergence condition in daily MACD. In that case, a correction should be seen first, with stronger rebound would be seen to 38.2% retracement of 0.8135 to 0.7201 at 0.7558. The down trend from 0.8135 will resume after the correction completes.
