While the pair continues to retain its corrective recovery tone, the challenge is for AUDUSD to decisively break and hold above the 1.0378/84 levels.This will set the stage for further strength towards the 1.0444 level, its Nov 03'2011 high with a loss of there turning focus to the 1.0569 level, its Oct 31 high. Its weekly RSI is bullish and pointing higher supporting this view. On the other hand, the risk to this analysis will be a return to its Jan 09'2012 low at 1.0141 where a violation will turn attention to the 1.0042 level, its Dec 29'2011 low and then the 0.9861 level. A loss of there will call for further decline towards the 0.9796 level, its Nov 11'2011 low. All in all, the pair remains biased to the upside on further upside offensive.

Weekly