AUDUSD: With its May 06'10 low at 0.8704 broken on Tuesday and the 0.8576 level, its 2010 low and the 0.8500 level violated in today's trading, risk of further weakness remains towards its Sept 02'09 low at 0.8238. This break now confirms a top and portends further weakness. Below the 0.8238 will expose the 0.8000 level, its big psycho level. Alternatively, the pair will have to break and close above the 0.8500/0.8576 level to clear the way for a recovery towards the 0.8704 level followed by the 0.9077 level, its May 10'10 high. As can be seen from the chart, AUDUSD has a lot of overhead resistance to overcome if any corrective recovery is staged. All in all, having ended its corrective recovery on Tuesday and weakened through the 0.8576/0.8500 levels today, further risk is likely towards the 0.8238 level.
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