By Mohammed Isah of fxtechstrategy.com
: The Australian dollar/dollar's outlook remains bullish despite the currency pair's one-day decline.
The pair's major barriers are its 2010/2009 highs at 0.9387/0.9404. A convincing invalidation of that area is required to trigger the resumption of its medium-term uptrend toward its July 27 high at 0.9592 and then its 2008 high at 0.9848.
As long as the pair trades above its medium-term rising trendline, our upside bias will remain valid.
On the downside, support starts at the 0.9250 level, the March 17 high. A loss there would leave the pair to target 0.9163, its April 6 high, followed by its long-term rising trend line at 0.9075.
A breather should occur there and possibly turn the AUD-USD higher again. Further out, support lies at the March 26 low at 0.8999.
Overall, the pair continues to retain its bullish outlook and should retarget the 0.9387 level and ultimately the 0.9404 level.
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.