Technicals | Apr 10 2012
It hasn't escaped the TechWizard's attention that the Aussie dollar has come under attack these past few weeks. AUD/USD has fallen from 1.0800 to approx 1.03000 in only six weeks.
However, the Wizard reports he does not agree with experts who see the Aussie below parity soon.
Comparing the current "correction" to the last three similar events, The Wizard reports the present sell-off is surprisingly more resilient. As such, the Wizard believes the present sell-off has a corrective structure.
In other words: he sees the Aussie dollar returning to higher levels in a not too distant future. AUD/USD is currently "hugging" the 20 Moving Average (M/A), reports the Wizard. The previous three occasions saw no such support from the 20 M/A.
Though we have at present a bearish MACD indicator (both lines below the 0-line), the TechWizard believes AUD/USD should be back above 1.0500 in the coming months.
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.
