AUD/USD Daily Outlook
Daily Pivots: (S1) 0.7404; (P) 0.7431; (R1) 0.7449;
AUD/USD drops to as low as 0.7379 so far today. Solid break of 0.7411 support confirms resumption of larger decline from 0.8135. Intraday bias stays on the downside for 0.7328 cluster support (61.8% retracement of 0.6826 to 0.8135 at 0.7326) next. Break there will target 61.8% projection of 0.8135 to 0.7411 from 0.7676 at 0.7229 next. On the upside, above 0.7453 minor resistance will turn bias neutral and bring consolidations first.
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.
EUR/AUD Daily Outlook
Daily Pivots: (S1) 1.5576; (P) 1.5623; (R1) 1.5702;
EUR/AUD’s break of 1.5690 minor resistance suggests that rebound from 1.5271 has resumed. Current upside acceleration suggest that the decline from 1.6189 has possibly completed with three waves down to 1.5271 already. Intraday bias is now on the upside with focus on 1.5773 support turned resistance. Break will bring retest of 1.6189 high. On the downside, below 1.5601 minor support will turn intraday bias neutral instead.
In the bigger picture, focus is back on 1.5773 support turned resistance with the current strong rebound. Firm break there will argue that medium term rise from 1.3624 (2017 low) is not completed yet. Further break of 1.6189 will target 1.6587 key resistance (2015 high). Though, rejection by 1.5773 will revive the case of bearish trend reversal and target 61.8% retracement of 1.3624 to 1.6189 at 1.4604.
