AUD/USD Daily Outlook

AUD/USD Daily Outlook

Daily Pivots: (S1) 0.8917; (P) 0.8949; (R1) 0.8989; More...

AUD/USD lost some upside momentum with 4 hours MACD crossed below signal line and intraday bias is turned neutral first. A short term bottom should be formed at 0.8659 already and another rise is in favor as long as 0.8825 minor support holds. Above 0.8980 temporary top will extend rally from there to 0.9085 resistance. Also, considering bullish convergence condition in daily MACD, the near term trend in AUD/USD should be reversing. Break of 0.9085 will affirm this case and have larger bullish implications. However, break of 0.8825 minor support will turn bias back to the downside and extend the larger fall to next long term fibonacci level at 0.8544.

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