FXstreet.com (Barcelona) - Australian Dollar is on its way to set a major top at 0.9400, as the pair reached key support at 0.8945/06, which, if broken, would put 0.8735 in the spotlight, according to Karen Jones, technical analyst at Commerzbank.

If the Aussie breaks below 0.8945/06, Karen Jones foresees next downside target at 0.8735: Failure here would put the .8735 December low into the limelight, a slide through which would mean that the last few years' uptrend has ended and that a fall back towards the .8265 June peak is on the cards.

On the upside, resistance levels lie at 0.9018 and 0.9028/15, says Jones: Minor resistance is seen along the, now broken through, one year uptrend line at .9018 and at the .9028/15 zone (78.6% Fibonacci retracement of the 2008 decline and early December low).