AUD-USD: Biased to the Upside

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 ( fxtechstrategy.com) -- The Australian dollar-dollar currency pair this week followed through higher on its bullish corrective recovery, breaching the 0.9983 and 1.0313 levels to open the door for further upside gains.

This technical development now leaves further upside risk targeting 1.0399, AUD-USD's Sept. 16 high.

The Australian dollar-dollar currency pair embarked on a corrective recovery following a temporary bottom set at the 0.9386 level on Oct. 4.

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A decisive break and hold above the 1.0399 level would turn attention to 1.0441 level, the pair's Sept. 12 high, with a breach of that level extending bullish pressure toward 1.0661 and then 1.0766, the pair's Sept. 1 high.

AUD-USD's weekly relative strength index, or RSI, is bullish and pointing higher, suggesting further strength.

Alternatively, support stands at the 1.0257/1.0290 levels, where a reversal of roles is expected to turn the pair back up. If that failed, we could see a push further lower toward the 0.9983/0.9926 levels. Further down, the 0.9767 level, the Australian dollar-dollar's Oct. 10 low, would be the next target.

Overall, AUD-USD remains biased to the upside.

-- Written by Mohammed Isah.

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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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