AUDUSD: Having rallied and reversed its Tuesday losses on Wednesday, the pair continues to strengthen further in early trading. This suggests that AUDUSD is likely headed towards the 1.0749 level, its Oct 27’2011 high. Further out, the pair the 1.0800 comes in as the next upside target followed by the 1.0900 level, all representing psycho levels. Its daily RSI is bullish and pointing higher suggesting further strength. On the other hand, on any pullbacks, the 1.0569 level, its Oct 31 high will be aimed at where a violation will open the door for a run at 1.0444 level. A reversal of roles as support is expected to occur here and turn the pair higher. Below here if seen will set the stage for further declines towards 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.
