Daily Pivots: (S1) 0.7057; (P) 0.7078; (R1) 0.7101; More…
AUD/USD drops sharply to as low as 0.7022 so far today. The break of 0.7040 low confirms resumption of the down trend from 0.8135. Intraday bias is back on the downside for 61.8% projection of 0.7314 to 0.7040 from 0.7159 at 0.6990. Break there will target 100% projection at 0.6885. On the upside, break of 0.7099 resistance is needed to signal short term bottoming. Otherwise, outlook will stays bearish in case of recovery.
In the bigger picture, fall from 0.8135 is tentatively treated as resuming long term down trend from 1.1079 (2011 high). Decisive break of 0.6826 will target 0.6008 key support next (2008 low). On the upside, break of 0.7314 resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook stays bearish even in case of strong rebound.
