AUDUSD: Although maintaining its broader medium term downtrend, AUDUSD faces risk of further recovery higher after it followed through on the back of reversal of its intraday losses on Wednesday. This price action has opened up risk on the upside towards the 0.7223 level.
On the upside, resistance lies at the 0.7200 level. A cut through here will turn attention to the 0.7250 level and then the 0.7300 level where a violation will set the stage for a retarget of the 0.7350 level. Its daily RSI is bullish and pointing higher suggesting further strength. On the downside, support resides at the 0.7100 level where a breach will aim at the 0.7050 level.
Below that level will set the stage for a run at the 0.7000 level with a cut through here targeting further downside towards the 0.6950 level. On the whole, AUDUSD turns focus on 0.7223 on correction.
