AUDUSD: Rally On Short Squeeze (Update)

FX:AUDUSD   Australian Dollar/U.S. Dollar
620 2 6
Update: The pair is at a key medium term juncture in my view, as price retest at key resistance leel at 0.9085 after failing to maintain a break below the support of the main falling channel , meantime RSI momentum is showing strong bullish divergence .

Although there is some technical signs that hint a potential rebound, we should keep in mind that price remains within a bearish trend since July 2011, and thus I would wait for a break above that resistance to initiate a long position.

Alternatively, I would monitor price action next week, looking for signs of another dip to the downside in attempt to resume the bearish trend , i would look for candlestick patterns such as pin bars.
Keep posted for updates at:

Earlier Analysis( Following the RBA's less dovish tone, concerns over rising inflation , and less concern of emerging market. Expectations of further interest rate cuts over the near term has almost diminished in my opinion. Accordingly, we will probably see strong short covering, and a short term correctional rally, especially if price manages to settle above the latest swing low at 0.8845. First upside target at 0.9085.
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The bearish scenario is likeky to unfold this week on re-escalation of the Crimea crisis and weak economic numbers from china
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