Technicals | Nov 05 2010
By Rudi Filapek-Vandyck
The TechWizard seems to think AUD/USD is now firmly on its way to 1.03, fueled and carried ever higher by global risk appetite which is fueled and carried by QE2 in the US.
The one indicator to watch, points out the Wizard, is the US Index. Price charts show the USD Index is clearly in an ongoing bear trend and the Wizard suspects this week might be the week when the USD Index will post a weekly close below technical support of 76.00.
The Wizard notes the index has now broken below this level for two days in a row, but is still trading at or near this important support level. Assuming tonight's trading session in the Northern Hemisphere will keep the pressure to the downside, the Wizard is already looking forward to the market zooming in on the next level of technical support, at 74.00.
Were 74.00 to equally give in, which is not inconceivable given the present trend reports the Wizard, then 72.00 will become the next level of interest. That would take the USD Index back to the lows of 2008.
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 his, not FNArena's (see our disclaimer).
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