The pair remains on the offensive following through higher on the back of its past week gains in today's trading session and opening the door for further strength towards its key resistance. The immediate barriers stand at the 0.9926 level, its Aug 09'2011 low and the 0.9983 level where a cap could occur and turn the pair back down in the direction of medium term trend. However, a decisive break and hold above that zone will push the pair further higher towards the 1.0110 level, its Aug 11'2011 low and then the 1.0290 level, its Sept 29'2011 high. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, as long as the pair continues to hold below the 0.9926/86 levels, the risk remains for AUDUSD to return to the 0.9386 level, its Oct 04'2011 low. A breach of here will call for a run at the 0.9127 level, its weekly 200 ema and possibly lower towards the 0.9000 level. All in all, the pair remains biased to the upside on corrective recovery but continues to maintain its medium term downside risks.
Join the Discussion