AUDUSD – Look for near term weakness
A larger corrective downtrend started from 1.1085 (July’11 high) appears to be still in force for AUDUSD which may be a large triangle consolidation in a range between 1.0855 and 0.9580 ( Alt- double zigzag corrective swing, which allows for a retest of the Oct’11 swing low at 0.9390 on multimonth basis). A break below 0.9580/0.9390 however deepens the correction toward 0.9145.
The uptrend has been renewed from the daily trendline support at 1.0175 with a daily bullish engulfing candle. Upside focus is now on 1.0600/1.0650. The pair looks overbought in the near term so a pullback is likely. A move below 1.0535 would test the 1.0435/1.0330 support which is key for bulls to continue the uptrend (watch the daily support line). A break above 1.0650 would expose the tough 1.0750/1.0850 resistance where it may fail. A reversal below 1.0300/1.0175 however dampens bulls.