Australia, Canada and Gold Weekly Overview – Dec. 12 to 17, 2010

The table below shows the Weekly and Daily Supports, Resistances and Risk-to-Reward forecasts obtained with the Forex AI platform calculator, for the Australian and Canadian Dollar plus Gold, versus the American Dollar. Technical analysis for this week has been based on Daily charts for USDCAD, AUDUSD and XAUUSD (Gold), using 20-day Bollinger Bands with 1.5, 2 and 2.5 deviations, 34, 100 and 200-day simple moving averages, trend lines and Fibonacci retracements and extensions.

SUPPORTS AND RESISTANCES

Weekly and Daily Close = December 10, 2010

WEEKLY OVERVIEW – DAILY CHARTS

USD/CAD

The Loonie has been ranging over the last three months and is now showing what would seem a bearish flag. Last week price action developed under middle line of the Bollinger Bands and SMA34 and I would expect it to break the recent lows targeting an extension near the 138.2%, which would be approximately the length of the flagpole. If parity support holds, though, we might break SMA34 and head towards the confluence of 100 and 200-day moving averages (also previous highs), targeting 1.0480/1.0500 if the actual sideways range is finally broken.

AUD/USD

Aussie ended last week at the SMA34 level and just above the Bollinger Bands middle line, with a bullish flag pattern in progress. It has now broken the highs and in my view will be heading for a retest of November all-time highs as a first target, then a possible extension to reach above near 1.0400 and making new highs. To the downside, we have SMA100 and previous lows (0.9535/0.9520) as a strong support level followed by 161.8% Fibonacci extension at 0.9220.

XAU/USD (GOLD)

After last week’s correction, Gold is again on the rise today after last Friday’s close with a doji, just above SMA34 and Bollinger Bands middle line. First target to the upside would be last highs, then a series of successive extensions until strong psychological level 1500.00 is finally reached. A break of SMA34 and middle line of the bands would bring this pair down to a 127% Fibonacci extension and SMA100 near 1300.00, and SMA200 at 1250.00 as next support level. However the expectations are biased to a continuation of the bullish trend until completion of the run to the highly announced 1500.00 milestone.