AUDUSD: A strong rally saw AUDUSD pushing through its key resistance at the 1.0749 level, its Oct 27’2011 high to close the week higher on Friday. This development has left the possibility of a return to the 1.0800 level on the cards. Further out, the next upside target resides at the 1.0900 level and subsequently its Aug 02’2011 high at 1.1004. Its daily and weekly RSI are bullish and pointing higher supporting this view. On the other hand, on any pullbacks, the 1.0749 level and the 1.0569 level, its Oct 31 high will be aimed at. A reversal of roles as support is expected to occur at those levels and turn the pair higher. However, a violation of there will open the door for a run at 1.0444 level followed by the 1.0230 level, its Jan 13’2012 low and then the 1.0141 level, its Jan 09’2012. All in all, the pair faces the risk of strengthening further having taken out its key resistance at 1.0749 level.
