Technicals | Oct 06 2010
By Rudi Filapek-Vandyck
The techwizard reported this week he sometimes pays attention to Elliott Waves in his market analyses. At times, he reports, Elliott Wave analysis can throw up a clear technical pattern in which case the Wizard has no qualms in using a defined five wave pattern as an additional support for his trading strategy.
The Wizard is quick in pointing out he never trades on Elliott Wave analysis alone.
Weekly charts for the AUD/USD suggest there could be a definite pattern, he says. This, however, still leaves the door open for two potential scenarios.
The Wizard's own proprietary "green box of resistance" suggests a correction in AUD/USD could be at hand. On the other hand, and this would certainly be in line with what seems to be happening in markets since yesterday, is that if the AUD/USD manages to close above the green box, we are likely to witness a "sprint to parity".
All this implies the current week could be a very important one for AUD/USD.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. The views expressed above are his, not FNArena's (see our disclaimer).
