Daily Pivots: (S1) 0.7144; (P) 0.7190; (R1) 0.7222; More…
Despite dipping to 0.7156, AUD/USD quickly lost momentum again and recovered. Intraday bias stays neutral first and more consolidation might be seen. In case of stronger recovery, upside should be limited well below 0.7361 resistance to bring fall resumption. On the downside, break of 0.7156 will target 100% projection of 0.7452 to 0.7201 from 0.7361 at 0.7110. Break will target 161.8% projection at 0.6955.
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 medium term correction should be seen first before down trend resumption.
