Daily Pivots: (S1) 0.7116; (P) 0.7138; (R1) 0.7153; More…
AUD/USD’s corrective recovery extended to 0.7160 but dropped sharply since then. For now, it’s still staying above 0.7054 temporary low and intraday bias remains neutral first. More consolidation could be seen. In case of another rise, upside should be limited below 0.7295 resistance. We’re favoring the case that rebound from 0.6722 has completed at 0.7295 already. On the downside break of 0.7054 support will affirm this case and target 61.8% retracement of 0.6722 to 0.7295 at 0.6941 next.
In the bigger picture, as long as 0.7393 resistance holds, we’d treat fall from 0.8135 as resuming long term down trend from 1.1079 (2011 high). Decisive break of 0.6826 (2016 low) will confirm this bearish view and resume the down trend to 0.6008 (2008 low). However, firm break of 0.7393 will argue that fall from 0.8135 has completed. And corrective pattern from 0.6826 has started the third leg, targeting 0.8135 again.
