The pair has reversed its one-day recovery and now looks to resume its broader medium term downtrend. This development now leaves AUDUSD targeting further declines towards the 0.9750 level where a violation will call for more weakness towards the 0.9663 level, its Nov 2011 low. A cut through here will extend weakness towards the 0.9485 level. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, the pair will have to break and hold above the 0.9934 level to annul its present declines and bring further upside gains towards the 1.0000 level, its psycho level. A turn above there will turn focus to the 1.0143 levels and then the 1.0216 level. All in all, the pair remains biased to the downside in the medium term on further declines.
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