Daily Pivots: (S1) 0.7529; (P) 0.7560; (R1) 0.7578; More…
AUD/USD is staying in tight range between 0.7502 and 0.7604 and intraday bias remains neutral first. On the downside, break of 0.7502 minor support will suggest that the corrective recovery from 0.7411 has completed. Intraday bias would be turned back to the downside for 0.7411 and below to resume the larger decline from 0.8135 to cluster support at 0.7328 (61.8% retracement of 0.6826 to 0.8135 at 0.7326). Above 0.7604 will extend the corrective rise. But we’d expect strong resistance from 38.2% retracement of 0.8135 to 0.7144 at 0.7688 to limit upside.
In the bigger picture, medium term rebound from 0.6826 is seen as a corrective move. Prior break of 0.7500 key support suggests that such correction is completed at 0.8135. Deeper decline would be seen back to retest 0.6826 low. In case of another rise, 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 eventually.
