Daily Pivots: (S1) 0.7070; (P) 0.7134; (R1) 0.7166; More…
AUD/USD drops to as low as as 0.7084 so far as fall from 0.7314 extends. Intraday bias remains on the downside. Larger decline from 0.8135 is likely resuming. Break of 0.7084 will target 61.8% projection of 0.7676 to 0.7084 from 0.7314 at 0.6948 next. On the upside, break of 0.7161 minor resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.
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.
