AUD/USD Daily Outlook

Daily Pivots: (S1) 0.7120; (P) 0.7136; (R1) 0.7155; More…

AUD/USD edges higher to 0.7171 as rebound from 0.6722 short term bottom extends. Upside momentum is diminishing as seen in 4 hour MACD. But with 0.7026 minor support intact, further rise is still expected. Nevertheless, upside should be limited below 0.7393 resistance. On the downside, break of 0.7026 minor support will turn bias back to the downside for retesting 0.6722 low. Overall, larger down trend from 0.8135 is expected to resume later after consolidation completes.

In the bigger picture, the failure to sustain below 0.6826 (2016 low) suggests that the long term down trend is now ready to resume yet. But prior rejection by 55 week EMA indicates underlying medium term bearishness in the pair. Outlook will also stay bearish as long as 0.7393 resistance holds. On the downside, sustained break of 0.6826 will target 0.6008 (2008 low).

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