AUD/USD drops sharply to as low as 0.9302 so far. The correction from 0.9504 is extending and intraday bias is back on the downside. Deeper fall could be seen to 0.9211 support. At this point, we'd still expect strong support from 38.2% retracement of 0.8659 to 0.9504 at 0.9181 to contain downside and bring rebound. On the upside, above 0.9384 minor resistance will turn bias neutral again.
In the bigger picture, price actions from 1.1079 are viewed as a medium term correction. Recent development argues that it's possibly finished at 0.8659 on bullish convergence condition in weekly MACD, ahead of 50% retracement of 0.6008 to 1.1079 at 0.8544. Rebound from there would extend higher to 38.2% retracement of 1.1079 to 0.8659 at 0.9583 first. Sustained break there will confirm this case and target 61.8% retracement at 1.0155 and above. However, break of 0.9080 near term support will dampen this bullish view and would likely extend the correction from 1.1079 to a new low.
