The pair followed through strongly higher on its bullish corrective recovery the past week breaking above the 0.9983 and the 1.0313 levels to open the door for further upside gains. This technical development now leaves further upside risk targeting the 1.0399 level, its Sept 16'2011 high. AUDUSD 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 will turn attention to the 1.0441 level, its Sept 12'2011 high with a breach of there extending bull pressure towards the 1.0661 level and then its Sept 01'2011 high at 1.0766 level. Its weekly RSI is 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.
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