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 (
) -- The Australian dollar/dollar currency pair (AUD-USD) is likely to make further gains in coming days after it breached what had been its 2011 high at 1.1009 on Tuesday and then followed through higher in early trading Wednesday.
This comes on the back of a recovery tone set from 1.0389, the AUD-USD's June 27 low.
Further gains will target the 1.1100 psychological level, with a breach there allowing for more strength toward 1.1200 and maybe even 1.1300.
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The Australian dollar/dollar currency pair's daily and weekly relative strength indices are bullish and pointing higher, suggesting further gains.
If the pair heads lower again, however, 1.1009 and 1.0800, AUD-USD's July 13 high, will act as support. As long as these levels hold, the pair's present bullish tone will hold.
The risk to our analysis will be a break and hold below 1.0525, the currency pair's July 12 low. The next target would be 1.0389. Further down, support lies at the April 5 low at 1.0287 and then the 0.618 Fibonacci retracement (0.9702-1.1009 rally) at 1.0200.
-- Written by Mohammed Isah
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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.