We continue to retain our corrective weakness bias as AUDUSD has failed to follow through higher on its hammer candle formation on Wednesday. This failure has increased the risk of further weakness towards the 1.0525 level, its July 12'2011 low followed by the 1.0389 level. Further down, support stands at its April 05'2011 low at 1.0287 and next its .618 Fib Ret.(0.9702-1.1009 rally) at 1.0200. Its bearish RSI remains supportive of this view. On the other hand, though biased to upside in the long term, the pair must climb back above the 1.1078 level, its year to date high to end its current bearishness and resume its uptrend now on hold. In such a case, the 1.1200 and the 1.1300 levels, all representing its psycho levels will be targeted.
Join the Discussion