The pair is currently on a third day of upside offensive following its one-day weakness on Friday last week. With AUDUSD now holding above its minor resistance at the 1.0018 level, its Jan 13'2011 high, further upside risk now targets the 1.0075 level, its Jan 05'2011 high. Further out, resistance lies at the 1.0253 level, its 2010 high. Beyond there will call for more strength towards the 1.0300 level followed by the 1.0400 level. Conversely, the threat to our analysis will be a break and hold below the 0.9855 level. This will set the stage for more declines towards the 0.9804 level, its Jan 11'2011 ahead of its Dec 08'2010 low at 0.9756. We expect a halt at the latter level to occur and turn the pair back up in the direction of its primary trend. Below there if seen will aim at the 0.9700 level. All in all, the pair looks to recapture the 1.0018 level and eventually resume its bullish recovery.
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