The Dollar strength of the last few days is temporary. Here we see the AUS$ pull back to test the longer term rising trend line. The strengthening trend for the AUS$ and the Rand is still intact.
The Rand might retrace to 6.80 against the USD before targeting 6.50 again.
After breaking resistance at 750 and consolidating above that level, the price is set for the next resistance level at 950.
The local wheat price is busy completing a huge "bottom formation" that started in November 2008. The price must break above the current Fibonacci resistance at 2900 (green line) to get going with an eventual target of 3800. This target may only be reached towards the end of 2011.
Our feeling at the moment is that the opportunity in the wheat market should be well exploited this year for the adverse situation in the Ukrain and Queensland; and the wheather problems in the USA won't last forever. We might have to fix the price for 2012 forward towards the end of 2011. We will keep you posted.
Remember, even the best analysis is never a certainty. Always limit your exposure and protect your capital.
