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 pair broke its key support at the 0.9926 level, its Aug. 9, 2011 low, following a sharp selloff on Thursday. Although presently seen hesitating off its Thursday low (0.9691), AUD-USD remains biased to the downside in the short term. This suggests its present price hesitation should give way for a push lower toward the 0.9691 level, its Sept .22, 2011 low. Further down, support stands at the 0.9536 level, its Nov. 2010 low followed by the 0.9450 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, recovery if triggered will turn risk to the 0.9926 level, its Aug. 9, 2011 low where a reversal of roles as resistance is expected to occur and turn the pair lower. Further out, the 1.0110 level, its Aug. 11, 2011 low comes in as the next upside ahead of the 1.0339 level, its Sept. 16, 2011 high. All in all, the pair remains biased to the downside in the short term.
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.