AUDUSD: With a reversal of its Friday weakness now underway, AUDUSD could be building up further downside pressure towards its key support at the 0.9861 level, its Dec 15’2011 low. On continued weakness through that level, the pair will target the 0.9796 level, its Nov 11’2011 low as the next downside objective with a breach setting the stage for a move further lower towards the 0.9663 level, its Nov 23’2011 low. The pair may find a breather here but if that level is violated, a run at 0.9386 level, its Oct’2011 low could follow. Its daily RSI is bearish and pointing lower supporting this view. On the upside, AUDUSD will have to return above the 1.0160 level and the 1.0378 level, its Nov 08’2011 high to halt its present downside pressure and then bring further gains towards the 1.0444 level, its Nov 03’2011 high. Further out, resistance comes in at the 1.0569 level, its Oct 31 high. All in all, the pair remains vulnerable to the downside following its last week losses.
