AUD/USD Daily Outlook

Daily Pivots: (S1) 0.7053; (P) 0.7068; (R1) 0.7093; More…

A temporary low should be in place at 0.7040 in AUD/USD with today’s recovery. Intraday bias is turned neutral for consolidation first. Stronger recovery could be seen to 4 hour 55 EMA (now at 0.7136). But upside should be limited well below 0.7314 resistance to bring fall resumption. Break of 0.7040 will resume whole down trend from 0.8135 to 61.8% projection of 0.7676 to 0.7084 from 0.7314 at 0.6948 next.

In the bigger picture, fall from 0.8135 is tentatively treated as resuming long term down trend from 1.1079 (2011 high). Decisive break of 0.6826 will target 0.6008 key support next (2008 low). However, break of 0.7500 support turned resistance will argue that the corrective pattern from 0.6826 is going to extend with another rising leg before completion.