With a sharp rally seeing AUDUSD reversing its Thursday weakness, there is risk of a return to the 1. 0222/42 levels. This if it occurs will resume its short term uptrend towards its May 03'2012 high at 1.0325. A cap could occur here and possibly turn the pair lower. Its daily RSI has turned higher supporting this view. Conversely, if its present upside attempt fails, expect the pair to return to the 0.9967 level. A trade below here will set the stage for a run at the 0.9819 level. Further down, support comes in at the 0.9735 level where a breach will call for a run at the 0.9584 level. All in all, the pair continues to retain its recovery tone.

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