AUD-USD Reverses, Heads Higher

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (fxtechstrategy.com) -- With AUD-USD reversing its Monday losses and challenging its psycho level at 1.0800, the risk is for further strength. This would target the psychological 1.0900 level.

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Further out, the next upside target resides at the 1.1000 to 1.1004 levels and ultimately, its July 27 high at 1.1078. Its daily RSI is bullish and pointing higher supporting this view.

On the other hand, on any pullbacks, a reversal of roles as support will occur at the Oct. 27 high of 1.0749 and then turn the pair back up.

However, if this fails to happen, we could see the pair aiming at the Oct. 31 high of 1.0569. A violation there would open the door for a run at 1.0444 level. Below there will set the stage for further declines toward the Jan. 13 low of 1.0230.

All in all, the pair faces the risk of strengthening further.

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