AUDUSD: Despite its attempts at recovering higher, it continues to hold on to its broader medium term downside bias. With that said, we expect its current recovery attempts to fade at the 0.8755 level or maximum at the 0.8822 level if it does continue.
Support lies at the 0.8659 level followed by the 0.8600 level where a breach will aim at the 0.8550 level. Further down, support is located at the 0.8500 level. Its daily RSI is bearish and pointing lower suggesting further weakness.
On the upside, resistance resides at the 0.8755 level initially with a cut through there targeting the 0.8822/47 levels where a reversal of roles is likely to occur. But if this fails, expect more recovery to occur towards the 0.8915 level, its Jan 16’2014 high and next the 0.9000 level, its big psycho level.
All in all, the pair remains biased to the downside in the medium term.
Guest post by FX Tech Strategy.
