AUDUSD: We maintain our bullish call on AUDUSD as it continues to press higher on the back of its long term resumption. The pair should strengthen further with the possibility of convincingly breaking and holding above the 1.0900 level, its psycho level. This will drive the pair further towards another big psycho level at 1.1000.
The psychological levels are used as resistance because of lack of the absence of overhead resistance levels. Both its weekly and daily momentum indicators are bullish and pointing higher supporting its current trend.
Alternatively, on any pullback, AUDUSD will target its April 21’2011 high at 1.0774 ahead of the 1.0679 level with a breach of there allowing for more declines towards the 1.0581 level, its Mar 08’2011 high. We expect a halt in declines at this level if tested as a reversal of roles as support is likely to occur.