AUDUSD- Even though the pair retains its broader declines activated from the 0.9404 level, it has now triggered corrective upside gains and presently looks to decisively break and hold above the 0.8943 level, its Nov 27’09 low. The pair was seen turning off that level on Tuesday though closing higher. This level must be invalidated to continue its recovery started at the 0.8733 level towards the 0.9175 level, its Dec 14’09 where a break will expose the 0.9321 level, its Dec 03’09 high and then its YTD high at 0.9404. Its daily RSI is bullish and pointing higher supporting this view. On the downside, the risk to its current correction will be a failure at the 0.9043 level which will mean declines lower towards the 0.8904 level, its Nov 01’09 high followed by the 0.8733 level and then the 0.8567 level, its Oct 02’09 low with a cut through the latter targeting its Aug 14’09 high at 0.8476.
Daily Chart: AUDUSD