Technicals | Mar 07 2011
– TechWizard reports 1.0250 is now key for AUD/USD
– If the level is broken on a weekly closing basis, investors should expect a rally higher
By Rudi Filapek-Vandyck
It has not escaped the TechWizard's attention that AUD/USD is once again hovering near all time highs, as well as the fact that a large part of the global investment community is expecting to see more downward pressure on the greenback.
The Wizard is of the view that investors should watch 1.0250 closely. He suggests that were AUD/USD to close above this level on a weekly closing basis, much higher levels can be seen in a short time span. It will force those who are currently short to scramble for cover and thus the market's focus will instantly jump to 1.0500 and then to 1.0750, he reports.
He quickly adds this will not be good news for companies and investors in Australia, unless one is planning a holiday in California.
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.
