AUD/USD Daily Outlook

AUD/USD Daily Outlook

Daily Pivots: (S1) 0.8964; (P) 0.9006; (R1) 0.9075; More...

AUD/USD recovers today but is staying in range below 0.9080 and thus, intraday bias remains neutral first. Further rally is expected with 0.8906 minor support intact. Decisive break of 0.9085 will be an early sign of larger trend reversal. That is the whole correction pattern from 1.1079 might have finished at 0.8659 and further rally should be seen to 38.2% retracement of 1.1079 to 0.8659 at 0.9583 next. However, break of 0.8906 will argue that rebound from 0.8659 has completed and will turn bias back to the downside for retesting this low.

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.