Technicals | May 03 2011
By Rudi Filapek-Vandyck
There simply does not look a reversal on the cards for the US dollar, reports the TechWizard. As such, he believes USD/CAD will be catching up with AUD/USD shortly with the strengthening Canadian dollar anticipated to push USD/CAD to 0.9449. If this occurs, it would mark the third test in three weeks of what the TechWizard describes as a "key support level" for the cross.
Given his favourite indicator, the MACD, remains negative for USD/CAD the Wizard is of the view that a third test will prove one too many and USD/CAD should thus be expected to see price action move to lower levels.
The Wizard reports a close below 0.9440 should see the next target at 0.9050 come into play.
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
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