AUDUSD: Loss of upside momentum triggered off the 0.8789 level, its July 08'10 high continues to pan out as the pair was seen weakening in early trading today. While AUDUSD continues to hold above the 0.8565 level, its nearer term uptrend started from the 0.8065 level remains valid. This suggests that its present bear pressure remains corrective.
We are looking for the pair to trade back above the 0.8789 level and the 0.8858 level, its Jun 21'10 high with a decisive break and hold above there allowing the resumption of its nearer term uptrend now on hold towards its psycho level at 0.9000 and even higher. On the downside, support lies at the 0.8500/65 zone with a breach targeting the 0.8314 level, its July 01'10 low, and then its Jun 10'10 low at 0.8274 ahead of the 0.8065 level, its 2010 low. We expect this level to provide a strong support and turn the pair higher if tested.