AUD/USD extends the correction lower

FXstreet.com (Barcelona) -After climbing to the vicinity of 0.9200 the figure overnight, renewed weakness in the Aussie dollar is now driving the AUD/USD to test session lows around 0.9160.

AUD/USD remains vulnerable

The pair is still unable to follow through the recent peaks around 0.9300, being rejected again on a daily basis on Wednesday after Bernanke’s testimony. “The very short-term outlook for AUD/USD looks moderately bullish, whilst this profit-taking phase continues on the crosses, and buying dips to .9170 is favoured. Overall the bear trend is still in control and only a clean break above .9350 will change this outlook so trading the edges of .90/.9350 range makes sense on a more medium-term perspective”, commented Sean Lee, Analyst at FXWW.

AUD/USD levels to watch

The pair is now losing 0.02% at 0.9168 facing the next support at 0.9038 (low Jukl.3) ahead of 0.9000 (psychological support) and then 0.8871 (high Jul.2007). On the upside, a break above 0.9305 (high Jul.11) would bring 0.9328/44 (mid-June low) and finally 0.9528 (May low).

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