AUDUSD: Retains Its Corrective Tone, Eyes The 0.9086 Level
AUDUSD- Corrective weakness triggered off its YTD high at 0.9401 level continues to dominate the pair's price action declining further lower and opening the door for additional weakness. That leaves a convincing break of its nearby support at the 0.9207 level, its Nov 12'09 low triggering further downside towards its LT rising trendline curreny at 0.9086. We envisage a cap here if tested but if that snaps, deeper corrective decline could be seen towards its Nov 01'09 high at 0.8904. Its daily momentum studies are bearish and pointing lower suggesting further downside losses. On the upside, a break above the 0.9401 level is required to reverse its current weakness and bring gains towards the 0.9592 level, its July 27'08 high ahead of the 0.9790 level, its July 20'08 high. While the current decline remains above the its LT rising trendline, a retarget of the 0.9401 level is envisaged.
Daily Chart: AUDUSD