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 violating its key supports in the 1.0422 area in early trading Thursday, the risk is for it to weaken further.
The pair is testing the 1.0366 level, its daily 200 exponential moving average and a decisive break of there will turn focus to the psychological level of 1.0300. Further down, support stands at 1.0253, its .618 Fibonacci Retracement (0.9861-to-1.0853 rally). Its daily RSI is bearish and pointing lower supporting this view.
The alternative scenario will be for the pair to return to its Feb. 8 high at 1.0853. Above there will end its present bear threats and open further upside risk toward the 1.0900 level, representing its psychological level. Follow TheStreet on Twitter and become a fan on Facebook. Further out, the next upside target is the 1.1000-level area and ultimately, the July 27 high at 1.1078. Until this occurs, our bias remains lower on further weakness. All in all, the pair remains biased to the downside.