Technicals | Oct 18 2012
We alologise for the low resolution of the following chart. What one may be able to discern through the steam of the Wizard's cauldron is a triangular pattern having formed for the AUD-USD on the long-term monthly chart. The extent of the triangle before convergence is at US$0.94 on the downside and US$1.10 on the upside.
One may also note at the bottom the Wizard's trusty MACD indicator has turned positive. The following outlook from the Wizard was determined prior to last night's one cent rally in the currency.
On the monthly chart of the AUD-USD there is a bullish triangle forming, the Wizard notes, and being a monthly chart this is a long-term triangle lasting many months, but the outcome should be a breakout above US$1.10 next year.
Until that breakout occurs we can expect further choppy trading as the norm, the Wizard adds.
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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