AUDUSD Outlook | Written by ActionForex.com
AUD/USD engaged in sideway trading between 0.9752 and 0.9964 last week. Initial bias remains neutral this week and more consolidations could be seen. But still we'd expect strong support from 61.8% retracement of 0.9536 to 0.9964 at 0.9699 to contain downside and bring resumption of rise from 0.9536 eventually. Above 0.9964 will target 1.0181 high first and then 61.8% projection of 0.8770 to 1.0181 from 0.9536 at 1.0408.
In the bigger picture, AUD/USD's medium term up trend from 0.6008 is still in progress. Nevertheless, note that both the rise from 0.8066 and the larger rally from 0.6008 are showing sign of loss of momentum. More importantly, rise from 0.8066 is possibly the fifth wave in the five wave sequence from 0.6088, which has met the 61.8% projection target already. Hence, we'll be cautiously looking for reversal signal in next rise and a break of 0.9536 support will indicate that a sizeable correction could finally be starting to drag AUD/USD back to 0.8066/9404 support zone.
In the longer term picture, long term up trend from 0.4773 (01 low) is still in progress and would possibly target 100% projection of 0.4773 to 0.9849 from 0.6008 at 1.1084.
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