AUDUSD- Upside momentum continues to build up as strength triggered off its Dec 23'09 high at 0.8733 continues to target higher prices. If a convincing break and hold above its Nov 11'09 high at 0.9321 materializes, then we should expect the pair to trade further higher towards its 2009 high at 0.9404. This view is valid while its Dec 14'09 high at 0.9173 continues to hold as support. Beyond its 2009 high at 0.9404 will activate the resumption of the pair's medium term uptrend towards its July 27'08 high at 0.9592. AUDUSD is supported by strength now see in the commodities. To the downside, below the 0.9173 level will clear the way for further downside towards the 0.8936 level, its Jan 04'10 low with a loss of there paving the way for further downside towards its Oct 01'09 high at 0.8857 and then its Dec 24'09 low at 0.8733. On the whole, with its declines off the 0.9404 level almost reversed, threats remain higher for a retest of that level and possibly a break and hold above there.
Daily Chart: AUDUSD