AUDUSD: Loss Of Longer Term TrendlineTargets The 0.8904 Level
AUDUSD -The pair is on its way to a second-week of downside losses following its failure at the 0.9404 level and Thursday break and hold below its longer term rising trendlineinitiated from the 0.6303 level. The damage done with the loss of its longer term trendlinehas put a temporary hold on its medium term uptrend and may create deeper declines if its important swing low at 0.8904 level is violated. That will neutralize its pattern of higher highs and lows defining its current uptrend seen on the daily chart and bring further downside risk towards the 0.8672 level, its Oct 01'09 low. Its daily stochasticsand weekly RSI are both bearish and pointing lower suggesting further weakness. On the upside, recovery if seen should target its Nov 20'09 low at 0.9059 followed its Nov 25'09 high at 0.9321 and then its YTD high at 0.9401 where a violation is required to trigger the resumption of its medium term uptrend and bring more gains towards the 0.9592 level, its July 27'08 high and next the 0.9790 level, its July 20'08 high. We maintain that while the pair remains weak and trades below its invalidated LT trendline, nearer term trend remains to the downside.