AUDUSD: Challenges The 0.8942 Level
AUDUSD- Having failed to hold on its Monday strength, AUDUSD was seen weakening today breaking below its last week low at 0.8942. AUDUSD continues to face downside pressure following its loss of momentum at its YTD high at 0.9327 and its subsequent price collapse. Below the 0.8942 level will set the stage for a run at the 0.8902 level where its MT rising trendline is located. A cap is expected there but on a failure of there, we could witness further declines towards its Oct 01'09 high at 0.8857 and then the 0.8676 level, its Oct 05'09 low. Daily studies are bearish and pointing lower suggesting further downside weakness. On the upside, to avert its present downside threats, AUDUSD must break and maintain above the 0.9275 level, its Oct 26'09 high to signal a return to the 0.9327 level, its YTD high with a clean break above there resuming its MT uptrend and putting it in position to head further higher. On the whole, though medium term biased to the upside, its immediate risk remains lower nearer term.
Daily Chart: AUDUSD