Technicals | May 23 2011
By Rudi Filapek-Vandyck
It would appear underlying dynamics for the Australian dollar are quickly reversing trend with the TechWizard reporting weakness, not strength, should be expected in the immediate future. He warns investors should not underestimate the currencies downward potential, predicting we could witness AUD/USD falling back to 1.02 within a relatively short time span. This would mark a swift turnaround from the 1.10 seen in April. AUD/USD fell as low as 0.98 in March.
The Wizard reports key technical support for AUD/USD is currently at 1.05. A daily close below this level would put the market's focus on 1.02.
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. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.