Daily Pivots: (S1) 0.7253; (P) 0.7273; (R1) 0.7296; More…
AUD/USD lost downside momentum after hitting near term channel support, and intraday bias is turned neutral first. But further decline is expected as long as 0.7369 resistance holds. We’d holding on to the view that rebound from 0.7105 could be complete with three waves up to 0.7555. ON the downside, break of 0.7248 will target 0.7169 support first, and then 0.7105. On the upside, however, break of 0.7369 resistance will turn bias back to the upside for retesting 0.7555 instead.
In the bigger picture, with 0.6991 cluster support (38.2% retracement of 0.5506 to 0.8006 at 0.7051) intact, we’re seeing price action from 0.8006 as a correction only. That is, up trend from 0.5506 low would resume after the correction completes. In that case, main focus will be 0.8135 key resistance (2018 high). Sustained break there will carry larger bullish implications. However, sustained break of 0.6991 will argue that the whole medium term trend has indeed reversed.
