Sharp Drop In AUD/USD
Trading remains neutral, despite sharp fall. Focus is on support 0.7199. Trend reversal is not excluded. Deeper decline is expected to retest low 0.7020. Pivot points are at: (S1) 0.7210; (P) 0.7229; (R1) 0.7245.
Overcoming of 0.7199 will indicate that the corrective growth from 0.7020 has completed earlier than expected. Trading above minor resistance 0.7246 will back to the upside. In that case, corrective rise from 0.7020 would extend to 38.2% retracement of 0.8135 to 0.7020 at 0.7446 before completion.
A medium term bottom was formed at 0.7020 ahead of key support 0.6826. While stronger bounce is expected, upside should be limited by strong resistance from support turned resistance 0.7500. The drop from 0.8135 should resume and take on low 0.6826 at a later stage, after the correction from 0.7020 completes.