Technicals | Jul 12 2010
By Rudi Filapek-Vandyck
The TechWizard has observed the AUD/USD has put in a very strong rally last week. He points out there are some key technical hurdles in the way forward. If AUD/USD manages to climb above 0.8860-0.9080 then the cross would be able to target the recent recovery high at 0.9380. But first we'll have to wait to see whether the first hurdle can be successfully attacked.
In line with the view expressed over the past weeks, the TechWizard is of the opinion that the next few weeks will be key for global risk appetite, and thus for the Australian dollar. If a new high is on the cards for AUD/USD then parity becomes a genuine possibility again, he adds.
The alternative -a failure- would not be a good signal as this would leave the door open to carve out a head-and-shoulders formation on price charts, and that's one signal best avoided, he says.
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 are his, not FNArena's (see our disclaimer).