Daily Pivots: (S1) 0.7172; (P) 0.7192; (R1) 0.7217; More…
As long as 0.7234 minor resistance holds, further decline is expected in AUD/USD. Next target is 100% projection of 0.7452 to 0.7201 from 0.7361 at 0.7110. Break will target 161.8% projection at 0.6955. However, break of 0.7234 will indicate short term bottoming and bring lengthier consolidations.
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.
