AUDUSD: While AUDUSD looks vulnerable to the downside following its lower close the past week, it requires a break and hold the 1.0525/1.0507 levels to convince the market of further weakness. If this occurs, expect further declines to shape up towards the 1.0427 level, its Jan 24’2012 low followed by its .382 Fib Ret at 1.395 level. On a turn below here, the pair will aim at 1.0444 level. Its daily RSI is bearish and pointing lower supporting this view. The alternative scenario will be for the pair to return to its Feb 08’2012 high at 1.0842. Above here will open further upside risk towards the 1.0900 level, representing its psycho level. Further out, the next upside target resides at the 1.1000/4 levels and ultimately, its July 27’2011 high at 1.1078. All in all, the pair remains biased to the downside on correction though still maintaining its broader medium term upside.
