Daily Pivots: (S1) 0.7227; (P) 0.7270; (R1) 0.7301; More…
Despite spiking to 0.7314, AUD/USD quickly reversed from there. Subsequent breach of 0.7228 support turned resistance suggests that whole corrective rebound from 0.7084 has completed. Intraday bias is turned back to the downside for 0.7143 support first. Break there will likely resume larger fall from 0.8135 through 0.7084 low. On the upside, in case of another rise, upside should be limited below 0.7361 resistance to complete the correction and bring down trend resumption.
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). Current downside momentum as seen in weekly MACD support this bearish case. Firm break of 0.6826 will target 0.6008 key support next (2008 low). On the upside, break of 0.7361 resistance, however, argues that a medium term bottom is possibly in place, and stronger rebound could follow. We’ll assess the medium term outlook later if this happens.
