weekend charting 04122010, page-49

Below is my chart AU/USD chart.






I note the following:
1. Price has turned around in the first blue box from my post from last weekend.
2. RSI has remained in the upward trending RSI channel (green), indicating growing overall strength.
3. My gut feeling is that the second (higher) blue box will be achieved. The main reasoning for this is the rising overall strength in the RSI, the down-ward short-term RSI channel has breached and the RSI is now rising above the 50 per cent value (i.e. positive strength is greater on average than negative strength above the 50 per cent mark).
4. I also note the presence of a lower swing bottom, which indicates that the first blue box may be achieved and not the second. I am not sure how much weight to put on the lower swing bottom.

Just my 2 cents worth.

I am also interested in any thoughts on any potential impacts of AU/USD (or any currency) on XJO / XAO charts or any specific stock charts. I dont know much about these relationships but my gut feeling is that currency is a big driver in the current market. Any comments or charts are welcome.


Jim