AUD/USD Bullish Correction Due?

AUD/USD Daily Chart (as of 6/27/2013): The pair is trading below the daily EMA 20 (green line on chart), which has been acting as an important resistance line since the steep downtrend started in early May. Price tested the EMA 20 on June 3 and June 14, but both times failed to break above it. The current EMA 20 is at 0.9440, around the long-term resistance/support line 1 (10/4/2011 low) at 0.9400, which is also the November 2009 high and April 2010 high. Watch closely at the significant 0.9400/40 area.

The candlesticks for the past four trading sessions were all bullish candles. We had a “bullish harami” showing a possible short-term trend change; we had a “three white soldiers” variation confirming the prior harami pattern; we also had several “high-wave” candles from 6/24 to 6/25, showing the market is losing its directional bias.

The daily RSI is turning up from 30 to challenge a previously respected uptrend support/resistance line. We need the RSI to break above that line and above 50 to turn from bearish to bullish, at least for the short-term. Note also that both the MACD and RSI have established bullish divergences.