AUDUSD: Risk Still Remains Higher

AUDUSD: Risk Still Remains Higher

AUDUSD: Outlook for AUDUSD to strengthen further remains intact for a run at the 1.0155/1.0201 levels. If this occurs, price extension should follow towards its 2010 high at 1.0253 and possibly higher towards the 1.0300 and 1.0400 levels. Its daily stochastic has turned higher supporting this view. Alternatively, the risk to our analysis will be a break and hold below the 0.9702 level, its Mar 16'2011 low. This will trigger further declines towards the 0.9672 level, its daily 200 ema and next the 0.9536 level, its Dec 01'2010 low. All in all, the pair continues to look for a return above its major resistance at the 1.0253 level.

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