After a strong week of bullish momentum, AUDUSD opened a new week gapping into the 0.8800 region and targeting its May 17'10 high at 0.8852. On continued strength we could see the pair heading higher to its psycho level at 0.9000 and then its May 10'10 high at 0.9077. As long as its May 06'10 low at 0.8704 and the 0.8576 level, its Feb 05'10 high hold as supports its current upside offensive remains valid. The only risk to this upside view will be a turn back lower to close its gap. Alternatively, weakness if triggered will target its gap at 0.8728 followed by its May 06'10 low at 0.8704 where a reversal of roles is expected to turn the pair back up. Other supports are located at the 0.8576 level, its Feb 05'10 high and then its May 28'10 high at 0.8550. On the whole, AUDUSD remains on the offensive nearer term and looks to target further higher prices.
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