AUDUSD: Having capped its two-day recovery at 1.0556 level and tumbled lower on Tuesday and continuing to weaken, the risk for AUDUSD is to decline further towards the 1.0335 level, Mar 22’2012 low. Below here will leave the pair targeting the 1.0254 level and possibly lower towards the 1.0200 level.Its daily RSI is bearish and pointing lower supporting this view. On the other hand, it will have to break and close above the 1.0556 level and the 1.0635 level to signal that a bottom is in place. If this occurs, the pair should build up further upside gains towards its Feb 08’2012 high at 1.0853. Above here will end its present bear threats and 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. All in all, the pair remains biased to the downside on further bearish momentum term.
