AUDUSD Feb.2012

Divergence from a first week of Feb is finally showing its justification by last week breaking bullish support (orange) line and closing bellow 55MA and line itself. While current direction is showing weakening of Aussie $ there is still second line of support dating back from the end of Dec.2011. A current pattern may show up as a head-and-shoulder peaking up to 1.075 -080 area or testing recent high at 1.085 (double top pattern) while it still points-out for a further Aussie weakening in upcoming weeks. Rebound from 1.06 above 1.085 and closing above that area exposes testing of the all time high at 1.10.
Current resistance levels are 1.075, 080 and 085 where cautions shorts may be recommended - targets: 1.04, 1.02, 1.005, 0.99  and 0.97.
Short term: Long entry around 1.06 with 60 pip risk with target of 1.075 given oscillator confirmation.