AUD-USD: Pair Strength Limited - TheStreet

AUD-USD: Pair Strength Limited

Though the pair looks strong during the London session, downside threats lurk.
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AUD-USD: While AUD-USD may be strengthening during the London session today, failing to follow through on its past-week declines, as long as such strength is limited to its key resistance at the 0.9173 level (Dec. 14, 2009 high), we see further downside threats toward the 0.8936 level, its Jan. 4, 2010 low.

Beyond that level will turn attention to its Oct. 1, 2009 high at 0.8857, ahead of its Dec. 24 2009 low at 0.8733, with a loss of that level resuming its short-term declines toward its Oct. 2, 2009 low at 0.8567. Its daily stochastics, which has turned lower, remains supportive of this view.

To the topside, in order for AUD-USD to reverse its current weakness, it must close back above the 0.9173 level, with a firm hold above there opening up further risk toward its Jan. 14, 2010 high at 0.9327 and then its 2009 high at 0.9404. A break and close above the latter is required to resume its medium-term uptrend (now on hold since Nov. 16, 2009) and head toward its July 27, 2008 high at 0.9592 or even higher.

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

The Professional Suite

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.