AUD/USD Halts Weakness

The pair is on its second day of an upside offensive following a recovery off the 0.9155 level on Monday.
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AUD/USD

: The pair is on its second day of an upside offensive following a recovery off the 0.9155 level on Monday.

A further up move is likely towards the 0.9387 level, its Jan. 14, 2010, high, with a cut through there allowing further strength towards its 2009 high at 0.9404. Beyond there it will resume its medium-term uptrend towards its July 27, 2008, high of 0.9592 and then its 2008 high at 0.9848.

For a chart of AUD/USD click

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.

On the downside, support starts at the 0.9244 level, its April 17, 2010, high, with a loss then targeting the 0.9155 level, its April 19, 2010, high followed by its long-term rising trend line at 0.9075. A breather should occur there and possibly turn AUD/USD higher again. Further out, support lies at its March 26, 2010, low at 0.8999.

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Overall, the pair continues to hold its broader medium-term uptrend and should retarget the 0.9387 level and finally the 0.9404 level.

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.