Daily Pivots: (S1) 0.7139; (P) 0.7158; (R1) 0.7178; More…
AUD/USD weakens mildly today but it’s staying in range of 0.7116/7235. Intraday bias remains neutral first. As long as 0.7116 minor support holds, further rally is mildly in favor. On the upside, break of 0.7235 will target 0.7393 resistance. We’d expect strong resistance from there to limit upside. On the downside, break of 0.7116 minor support will suggest completion of rebound from 0.6722. Intraday bias will then be turned back to the downside for retesting this low.
In the bigger picture, the failure to sustain below 0.6826 (2016 low) suggests that the long term down trend is not 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).
