Daily Pivots: (S1) 0.6735; (P) 0.6777; (R1) 0.6802; More…
AUD/USD’s fall from 0.7031 is still in progress and intraday bias remains on the downside. Sustained break of 0.6754 support will confirm our bearish view. That is, corrective rebound from 0.6670 has completed with three waves up to 0.7031. Retest of 0.6670 low should be seen next. On the upside, break of 0.6849 support turned resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.
In the bigger picture, with 0.7082 resistance intact, there is no clear confirmation of trend reversal yet. That is, down trend from 0.8135 (2018 high) is still expect to continue to 0.6008 (2008 low). However, decisive break of 0.7082 will confirm medium term bottoming and bring stronger rally back to 55 month EMA (now at 0.7484).
