Detailed FX Market Outlook and Analysis

AUD/USD Daily Analysis 31-MAY-2022

AUD/USD Daily Analysis

AUD/USD’s rise from 0.6828 is still in progress and intraday bias stays on the upside for 0.7265 resistance. A firm break there will raise the chance of a larger trend reversal and target 0.7760 structural resistance next. On the downside, the break of 0.7034 minor support will turn bias back to the downside for retesting the 0.6828 low instead.

In the bigger picture, price actions from 0.8006 are seen as a corrective pattern to rise from 0.5506 (2020 low). A deeper fall could be seen to 50% retracement of 0.5506 to 0.8006 at 0.6756. This coincides with 100% projection of 0.8006 to 0.7105 from 0.7660 at 0.6760. Strong support is expected from the 0.6756/60 cluster to contain the downside to complete the correction. Meanwhile, a firm break of 0.7660 resistance will confirm that such a corrective pattern has been completed, and the larger uptrend is ready to resume.

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