Today's outlook for Australian Dollar and Canadian Dollar
Wednesday, February 08, 2012
by Carol Harmer of Charmer Charts
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Aussie has maintained strength ...but still did not break 1.0840 therefore we would still be holding shorts looking for another move lower towards 1.0690. We would view to cover all shorts to these lower levels.
Attempt small longs looking for the market to recover...and we see recovery back towards 1.0795/1.0820. Again we cover longs to here. Apply the same strategy of re-selling this market...again keeping stops above 1.0840.
Now if we do exceed 1.0840 you will find sellers scrabbling for cover and the buyers then take us higher for 1.0875 and the 1.0920/55.
Canada came lower but held above 0.9910 and this should help the market correct higher today. Below 0.9910 is 0.9885 and this will also prove to be good support.
We are turning bullish on the technical data on the med term charts and this may also help to buoy prices now... We also have the 55 weekly M/A coming in at 0.9910 so between these 2 prices is where we would like to see the market base..
We would look for a move back towards 1.0040 to 1.0075. Here we would look to cover all long positions. We would attempt small shorts, but as the market is beginning to turn positive profits should be taken on any shorts quite quickly as we would expect further strength to follow after a small correction.
Below 0.9830 and we would re-think our bullish scenario.
Carol Harmer has over 30 years experience of analysing and trading the world’s markets and is undoubtedly one of the most respected technical analysts in the world today.
Her career started in the early eighties, trading futures on the floor at LIFFE where she quickly discovered Technical Analysis as a way to maximise profits. She was one of the first traders on LIFFE to discover and study this form of analysis and quickly became widely recognised as an expert in its use as well as highly profitable.
This soon led to a position as Senior Technical Analyst for Midland Bank.
She was later head hunted for the role of Manager of Technical Analysis for Nomura Bank and then as Head of Technical Trading at Credit Suisse. Carol is also one of the first T/A's from a bank to join the STA (The Society of Technical Analysts) in the mid 80's and has trained and worked with some of the UK’s leading technical analysts.
In 1996 Carol launched 'Charmer Charts' to train independent traders in technical analysis and became the first person to provide daily forecasts for the established traders on the LIFFE floor.
She returned to the floor, trading her own account, advising traders throughout the day and continued her appearances on Bloomberg, CNBC and Reuters financial TV where she provided her valued, expert opinion on the direction of financial markets.
