AUDUSD: Recovery Theme Remains Intact, Scope Seen For More Gains (Weekly Technical Strategist)

AUDUSD: With AUDUSD breaking and holding above the 1.0598 level, its Aug 17'2011 high the past week, we are looking for it to strengthen further in the new week. This development will bring the pair against the 1.0778 level, its Aug 04'2011 high where a violation will call for a run at the 1.1004 level and ultimately its 2011 high at 1.1078. Its weekly RSI is bullish suggesting further gains. On the downside, support lies at the 1.0598 level, its Aug 17'2011 high where a reversal of roles is expected to turn the pair back up again. Other supports are located at the 1.0313 level and the 0.9926 level, its Aug 09'2011 high. Further down, support stands at the 0.9800 level. All in all, having broken and closed above its key resistance level, AUDUSD looks to build on that strength in the new week.