The pair is following through higher on its Friday gains and testing its resistance located at the 1.0399 level, its Sept 16'2011 high. AUDUSD had embarked on a corrective recovery following a temporary bottom set at the 0.9386 level on Oct 04'2011. A decisive break and hold above the 1.0399 level is required for the pair to push further higher towards the 1.0441 level, its Sept 12'2011 high where a breach will extend bull pressure towards the 1.0661 level and subsequently its Sept 01'2011 high at 1.0766 level. Its daily and weekly RSI are bullish and pointing higher suggesting further strength. Alternatively, support stands at the 1.0257/90 levels where a reversal of roles is expected to turn the pair back up but if this fails, we could see a push further lower towards the 0.9983/26 levels. Further down, the 0.9767 level, its Oct 10'2011 low will come as the next downside. All in all, the pair remains biased to the upside on further corrective bullish offensive.
Join the Discussion