Daily axes: (S1) 0.6854; (P) 0.6884; (p1) 0.6904; more...
The AUD/USD pair is recovering slightly after the initial decline, but there is no sign of a bottom yet. The intraday bias remains to the downside at this point. The current decline from 0.7187 should target a retracement from 0.5913 to 0.7187 at 0.6700. On the upside, minor resistance above 0.6911 will shift the intraday bias to neutral first. But the risk will remain on the downside as long as resistance at 0.7187 holds, in case of a recovery.
In the bigger picture, as long as the cluster support at 0.6706 holds, a rally from 0.5913 (2024 low) should remain in progress. A decisive break of the 61.8% retracement levels from 0.8006 to 0.5913 at 0.7206 will strengthen the case that it is indeed reversing the downtrend from 0.8006 (2021 high). However, a strong break of 0.6706 would mitigate this bullish case, and bring a deeper decline back to support at 0.6420, and possibly below.
