By Mohammed Isah of fxtechstrategy.com
NEW YORK (
: The Australian dollar-dollar currency pair reversed its intraday losses and strengthened Tuesday, and that means it could move toward resuming its nearer-term upward trend that was started at the 0.8065 level.
A resumption of that trend will require the pair to clear 0.8789 (being challenged) and 0.8858, its June 21 high. If it does, it could then target the psychological level at 0.9000 and even move higher.
On the downside, support lies at the 0.8500/65 zone. A breach of that area would allow the pair to target 0.8314, its July 1 low, and then 0.8274, its June 10 low, followed by 0.8065, its 2010 low. If tested, we expect this last level to provide strong support and turn the pair higher.
Overall, we expect the pair to return above the 0.8789 and the 0.8858 levels.
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.