Trailing stops were triggered in the AUD/USD overnight through 1.0420 as asset managers sold EUR/AUD in size. The short term charts look constructive and favour a dip-buying bias back to 1.0400 or preferably to 1.0370. Recent daily highs at 1.0475 provide the resistance levels.
If risk-aversion picks up in the wake of more Cypriot uncertainty, then the AUD/USD will come under more selling pressure so bulls still need to be careful about picking the correct entry level and bears will not be too worried about selling into sizeable rallies.