Daily Pivots: (S1) 0.7064; (P) 0.7132; (R1) 0.7177; More…
AUD/USD’s fall from 0.7393 resumed after brief consolidations and reaches as low as 0.7086 so far. Intraday bias is back on the downside for 0.7020 low. Decisive break there will resume larger decline from 0.8135 for 0.6826 key support. On the upside, break of 0.7203 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, a medium term bottom is in place at 0.7020 ahead of 0.6826 key support (2016 low). Stronger rebound could still be seen to correct the whole fall from 0.8135 high. But we’d expect strong resistance from 0.7500 support turned resistance to limit upside. Medium term fall from 0.8135 should resume later and extend to take on 0.6826 low at a later stage, after the correction from 0.7020 completes.
