AUDUSD: A second week of weakness puts the possibility of further declines on the table in the new week. Further price extension if seen will call for a move further lower towards its Nov 10’2011 low at 1.0052 with a cut through here targeting its bigger barrier standing at the 1.0000 level, its psycho level. Other supports are seen at the 0.9865 level, representing its Oct 12’2011 low and the 0.9752 level. Its weekly RSI is bearish and pointing lower supporting this view. Alternatively, the 1.0749 level, its Oct 27’2011 high will have to be violated to reverse its two-week losses and set the stage for further strength. This will activate its short term uptrend towards the 1.0850 level and ultimately the 1.1078 level. All in all, the pair has continued to weaken following through lower for a second week in a row.
