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 (
) -- AUD-USD: The pair now faces bear pressure as a further attempt at building on its recovery started from the 1.0439 has stalled at the 1.0754 level.
The risk of this development if a return above the 1.0754 does not occur will mean possible lower prices towards the 1.0439 level with a decisive penetration of there resuming its nearer term weakness towards the 1.0388 level, its April 12, 2011 low and subsequently its April 5, 2011 low at 1.0287.
Its daily RSI has turned lower supporting this view. Alternatively, for AUD-USD to re-establish its recovery, it will have to break and hold above 1.0754 level and then target the 1.0888 level, April 11, 2011 high. Further out, resistance comes in at the 1.1009 level, its 2011 high where a violation will put the pair in a position to strengthen further towards the 1.1100 and then the 1.1200 level, its psycho 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.