AUDUSD: Despite AUDUSD’s present price current hesitation, it continues to retain its overall long term uptrend started from the 0.6007 level (2008 low). With that said, we are looking for the pair strengthened further towards the 1.0400 levels with a violation of that level turning risk to the 1.0500 and then the 1.0600 level. Further out, resistance comes in at the 1.0700 level. Its weekly studies are bullish and pointing higher supporting this view. Alternatively, the risk to our analysis is an over bought condition now seen on the daily time frame suggesting a pullback could occur. If this materializes, we should see weakness targeting the 1.0253 level where a reversal of roles as support is expected to turn it back up. However, if this fails, further declines should develop towards the 0.9702 level, its Mar 16’2011 low followed by the 0.9672 level, its daily 200 ema and next the 0.9536 level, its Dec 01’2010 low. All in all, with the pair’s long term uptrend intact, further upside gains are likely though facing price hesitation.
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