AUD-USD: Bullish Outlook
We hold firm to our bullish outlook on the AUD-USD. We see the pair forcing upside momentum since it halted its corrective weakness at 0.9650.
Its present upside offensive leaves risk towards the 1.0002 level with a break of there before resuming its long-term uptrend towards the 1.0100 and 1.0200 levels, all representing its psycho levels.
Its daily stochastics is bullish and is pointing higher, supporting this view. On the downside, support starts at its Oct 25, 2010 high at 0.9853 level with a cut through there aiming at further declines towards the 0.9660 level, representing its Oct. 20, 2010 low.
Further down, there are supports at the 0.9540 level, its Oct. 5, 2010 low, the 0.9467 level and then its 2009 high at 0.9404. The latter level should reverse roles and provide support if tested thus turning the pair higher again.
Overall, the longer- term risk remains higher towards the 1.0002 level and beyond.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.
