THE VULCAN REPORT Review of AUD/USD - US DOLLAR AUSSIE (AUD/USD) as of Tuesday, May 04, 2010

THE VULCAN REPORT
Review of AUD/USD - US DOLLAR AUSSIE (AUD/USD)
as of Tuesday, May 04, 2010



CHART PATTERNS

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are "high," it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.

During the past 10 bars, there have been 5 white "UP" candles and 5 black "DOWN" candles.

During the past 50 bars, there have been 26 white "UP" candles and 22 black "DOWN" candles for a net of 4 white (UP) candles.

An engulfing bearish line occurred (where a black candle's real body completely contains the previous white candle's real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with AUD/USD - US DOLLAR AUSSIE), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle's real body.


PulseScan Swing Vix Swing Index

PulseScan: -4.24
Swing Vix: -4.60

Currently The Market Pulse is negative since it is trading below its signal line.The PulseScan crossed above the Swing Vix 2 period(s) ago.


PulseScan LONG ENTRY :

,,

,,



Swing Vix SHORT ENTRY :

1st PulseWave BreakDown - CONFIRMATION - GO SHORT @
BREAK DOWN 90.34
Profit Target 87.97
Stop Loss/Stop & Reverse 93.19,Hold shorts,

,,



The Trend Channel is UP! (i.e. "Positive Swing Vix") This means that positive momentum is entering the market. Expect sideways to higher prices within the next 3-5 days
,
The Swing Vix is not currently in a topping (above 39) or bottoming (below -39) range. A buy or sell signal is generated when the Swing Vix moves out of an overbought/oversold area. The last signal was a Over-Sold Buy 89 period(s) Ago.


The Swing Vix does not currently show any Failure Swings.
The security price has set a new 14-period low while the Swing Vix has not. This is a bullish divergence.
Since the Swing Vix crossed its moving average, AUD/USD - US DOLLAR AUSSIE's price has decreased 1.15%, and has ranged from a high of 93.240 to a low of 90.820.

MARKET TREND

Currently the TREND is Bullish-Retracement- Up.
The current market condition for AUD/USD - US DOLLAR AUSSIE is:

Bullish\

The close is currently Above it's 264 Long Term period moving average. 85.52
The close is currently Below it's 40 Intermediate Term period moving average. 91.63
The close is currently Below it's 10 Short Term period moving average. 92.33

Volatility

On 5/4/2010, AUD/USD - US DOLLAR AUSSIE closed above the lower band by 1.8%. 57.62% narrower than normal. The narrow width of the bands suggests low volatility as compared to AUD/USD - US DOLLAR AUSSIE's normal range. Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. The bands have been in this narrow range for 7 period(s). The probability of a significant price move increases the longer the bands remain in this narrow range.


This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents.







AUD/USD chart
Attachment: aud usd chart - 5 may 2010.pdf
This has been downloaded 2 time(s).