AUDUSD: Though hesitating, AUDUSD continues to be biased to the upside short term while holding above its key support at the 1. 0222 level. Risk remains towards its May 03’2012 high at 1.0325 where a cap could occur and possibly turn the pair lower. If that level gives in further strength should build up towards its psycho level at 1.0400. Its daily RSI has turned higher supporting this view. On the other hand, if its present bear threats continue, expect the pair to return to the 1.0222 level where a reversal of roles as support is likely to occur. However, on a failure of that level, the 1.0150 level will be aimed at followed by the 1.0000 level and then the 0.9967 level. A trade below here will set the stage for a run at the 0.9819 level. All in all, the pair continues to retain its recovery tone.
