Daily Pivots: (S1) 0.7678; (P) 0.7740; (R1) 0.7773; More…
AUD/USD’s decline continues today and reaches as low as 0.7689 so far. Intraday bias remains on the downside for a test on 0.7500 key support next. We’ll keep an eye on sign of downside acceleration to gauge the chance of breaking 0.7500. On the upside, above 0.7769 minor resistance will turn intraday bias neutral first. But outlook will remain bearish as long as 0.7915 resistance holds.
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move. It might still extend higher but we’d expect strong resistance from 38.2% retracement of 1.1079 to 0.6826 at 0.8451 to limit upside to bring long term down trend resumption. On the downside, break of 0.7500 support will now be an important signal that such corrective rebound is completed. In that case, AUD/USD would be heading back to 0.6826 low in medium term.
