AUDUSD- Despite its Thursday strength following through on its previous day gains, AUDUSD maintains its bearish nearer term tone suggesting a decline towards the 0.8943/04 level, its Nov 27'09/Nov 01'09 lows. (The only risk to this will be a break back above its invalidated trendline and then the 0.9404 level). An invalidation of 0.8943/04 level will neutralize its pattern of higher highs and higher lows and turn focus to its Oct 01'09 high at 0.8857 and then the 0.8567 level, its Oct 02'09 low. Its daily studies are bearish and trending lower supporting this view. In order for the pair to relief its present downside vulnerability, a break and hold above its YTD high residing at 0.9404 must be established to trigger the resumption of its medium term uptrend towards the 0.9592 level, its July 27'08 high and subsequently the 0.9790 level, its July 20'08 high.

Daily Chart: AUDUSD


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