AUD-USD Continues Upside Offensive

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 is following through higher against the USD after Friday gains and testing resistance at the Sept. 16 high of 1.0399. AUD-USD had embarked on a corrective recovery following a temporary bottom set at the Oct. 4 level of 0.9386.

A decisive break and hold above the 1.0399 level is required for the pair to push further higher toward the Sept. 12 high of 1.0441, where a breach will extend bull pressure toward the 1.0661 level and subsequently the Sept. 1 high of 1.0766. Its daily and weekly RSI are bullish and pointing higher suggesting further strength.

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Alternatively, support stands in the 1.0257 to 1.0290 levels where a reversal of roles is expected to turn the pair back up. If this fails, we could see a push further lower toward the 0.9983 level. Further down, the Oct. 10 low of 0.9767 will come as the next downside.

All in all, the pair remains biased to the upside on further corrective bullish offensive.

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.