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AUDUSD: Bear Pressure Targets Further Lower Prices

AUDUSD: As highlighted in our weekly analysis of the possibility of   a return below the 1.0502 level, its May 17’2011 low as long as AUDUSD trades and holds below the 1.0888 level, its May 2011 high, well that is currently underway.

An eventual violation of the 1, 0502 level will pave the way for more declines towards the 1.0388 level, its April 12’2011 low and subsequently its April 05’2011 low at 1.0287.

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Its daily RSI is bullish and pointing lower suggesting further weakness. Alternatively, for AUDUSD to re-establish its long term uptrend it has to break and hold above the 1.0888 level and then the 1.1009 level, its 2011 high.

This will put the pair in a position to strengthen further towards the 1.1100 and then the 1.1200 level, its psycho levels.

USDCHF: Set To Extend Weakness.

USDCHF: The risk of a return below the 0.9553 level, its 2011 low is now developing after the pair reversed almost all of its previous week gains to close at 0.8773 on Friday.

Prior to its present price action, USDCHF has been recovering since torching a low of 0.8553 following its long term downtrend started from the 1.1727 in May 2010.

With that said, on continued weakness, the 0.8553 level will be targeted with a break of there triggering the resumption of its long term downtrend towards the 0.8500 level, its psycho level.

A violation of that level will set the stage for further weakness towards the 0.9400 and 0.9300 levels, all representing its psycho levels. Its weekly RSI is bearish and pointing lower suggesting further weakness.

Alternatively, the risk to this analysis will be a return above the 0.8946 level, its May 13’2011 high. Further out, resistance comes in at the 0.9013 level, its April 19’2011 high and possibly higher towards its April 11 2011 high at 0.9104.

All in all, USDCHF remains vulnerable to the downside in the long term as it looks to weaken further on the back of its past week losses.