By Mohammed Isah of fxtechstrategy.com

AUD-USD: With the Australian dollar/dollar currency pair turning back below the 0.8550/00 levels (and creating technical damage to its nearer-term recovery off its 2010 low at 0.8065), risk continues to point to the downside, with eyes on the July 1 low at 0.8314.

The pair might take a breather there and turn higher, but if that July 1 low snaps, the pair should make a sharp decline toward its 2010 low at 0.8065, where a halt is expected.

Further out, support is located at the 0.7700 level, the July 2009 low, and 0.7449, its July 17 low.

If the pair sees further strength, it could target its psychological level at 0.8500. A turn above there would push the pair even higher, toward the 0.8594 level, the June 25 low.

If the pair moves above there, we should see more strength toward the 0.8858 level, the June 21 high, and then the psychological level at 0.9000.

Overall, the pair remains biased to the downside in the immediate term as it continues to weaken after its loss of momentum at the 0.8858 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.

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