Ella 
24-hour view: AUD/USD fell by 1.57% yesterday (NY close at 0.6613), which came as a surprise (we had thought AUD/USD could move higher, but a break above 0.6785 was unlikely). Not surprisingly, conditions are now severely oversold. However, the weakness in AUD/USD has not stabilized. AUD/USD is likely to break below the June low of 0.6595 today. Given the oversold conditions, the next major support at 0.6540 is unlikely to be threatened. On the upside, a break above 0.6655 (minor resistance at 0.6635) would suggest that AUD/USD weakness has stabilized.
Ahead 1-3 weeks ahead: In our latest report on Monday (July 31st when prices were at 0.6660), we highlighted that “AUD/USD is likely to fall to the June low of 0.6595, although the chances are slim.” Yesterday, AUD /USD plunged to a low of 0.6603 before closing at 0.6613 (-1.57%). Gaining momentum to the downside suggests that a break above 0.6595 would not be a surprise. A break of 0.6595 will shift focus to 0.6540. Overall, the weakness that AUD/USD started more than a week ago will not change unless AUD/USD breaks through 0.6710 (“strong resistance” which has moved down sharply from yesterday’s 0.6785 level).
