AUDUSD: With AUDUSD breaking and holding above its key resistance zones at 1.0378/84 levels and the 1.0444 level, its Nov 03’2011 high the past week, further price extension is likely in the new week. This has turned focus to the 1.0569 level, its Oct 31 high where a breach will aim at Oct 2011 high at 1.0749. Its weekly RSI is bullish and pointing higher supporting this view. On the other hand, the risk to this analysis will be a return to 1.0378/84 levels where a reversal of roles as support is expected to occur and turn the pair higher again. However, below here if seen could send the pair to as low as its Jan 09’2012 low at 1.0141 where a violation will shift attention to the 1.0042 level, its Dec 29’2011 low and then the 0.9861 level followed by the 0.9796 level, its Nov 11’2011 low. All in all, the pair remains biased to the upside on further upside offensive having violated its key resistance levels.
