AUD/USD Daily Outlook

AUD/USD Daily Outlook

Daily Pivots: (S1) 0.8915; (P) 0.8942; (R1) 0.8975; More...

The choppy decline from 0.9080 is still in progress and might extend lower. The structure of the fall from 0.9080 suggests that it should be a correction only. Thus in case of another fall, we'd expect strong support from 61.8% retracement of 0.8659 to 0.9080 at 0.8820 to bring rally resumption. Above 0.9080/5 resistance will firstly resume the rebound from 0.8659. Also, that will be early signal of larger trend reversal and should target 38.2% retracement of 1.1079 to 0.8659 at 0.9583 next.

In the bigger picture, price actions from 1.1079 are viewed as a medium term correction. Such correction is still in progress and could target 50% retracement of 0.6008 to 1.1079 at 0.8544 and below. Nonetheless, we'd expect strong support from 0.8066 to contain downside to complete the correction and bring rebound. Meanwhile, break of 0.9757 resistance will indicate that such correction is completed and turn outlook bullish.