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AUDUSD: Sets Up For The 1.0388 Level

 AUDUSD: As corrective bear pressure entered its second week in a row, risk of further declines is now developing towards the 1.0388 level, its April 12’2011 low.This is coming on the back of a loss of upside momentum at the 1.1009 level, its 2011 high. The 1.0388 level should provide a strong support on an initial test and turn the pair back up in the direction of its primary trend. However, on a break of that level, further weakness could follow towards its April 05’2011 low at 1.0287. Alternatively, for AUDUSD to re-establish its long term uptrend it has to break and hold above the 1.1009 level. This will put the pair in a position to strengthen further towards the 1.1100 and then the 1.1200 level, its psycho levels.