With a third day of downside pressure seeing AUDUSD breaking through its key support at the 0.8822 level, further weakness is envisaged.
Support lies at 0.8750 level, its psycho level where bulls may come in. However, if that level fails to hold, expect further decline to occur towards the 0.8700 level, its psycho level and subsequently the 0.8650 level.
Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance resides at the 0.8915 level, its Jan 16’2014 high followed by the 0.9000 level, its big psycho level with a cut through here paving the way for a run at the 0.9050 level.
Further out, upside objective comes in at the 0.9166 level, its Dec 10 2013 high. All in all, the pair remains biased to the downside on further weakness.
Guest post by FX Tech Strategy
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