AUDUSD: The pair has resumed its bearishness after a brief pause on Friday and now looks to recapture its immediate support at the 0.9865 level, representing its Oct 12’2011 low. A firm break of there will turn risk towards the 0.9752 level, its Oct 10’2011 low followed by the 0.9524 level, its rising trendline. The pair’s continued decline is coming on the back of a loss of upside momentum at the 1.0749 level in late Oct’2011. Its daily and weekly RSI are bearish and pointing lower suggesting further declines. On the other hand, AUDUSD will have to break and hold above the 1.0312 and the 1.0441 levels to reduce its downside pressure and then target the 1.0569 level, its Oct 31 high. A breach of here will turn focus to the 1.0749 level, its Oct 27’2011 high. All in all, the pair remains weak and vulnerable to the downside in the short term on further declines.
