If I may impart to all traders sincerely and respectfully how AUD trades. AUD and EUR are the exact same pair. AUD is important to EUR due to the AUD/EUR relationship otherwise AUD wouldn’t have a connection to the ECB and Europe. For the RBA to maintain the AUD/EUR relationship and not lose the wide wide AUD/EUR ranges or see prices go wildly out of control, they aligned AUD/USD to trade Exactly as EUR/USD. The only difference between AUD/USD and EUR/USD is in the speed of price movements. AUD/USD price speeds are slower. But AUD/USD slower price speeds automatically controls AUD/EUR but at the slower pace. AUD/USD speed in prices is controlled by placing AUD on a different place along the curve V EUR/USD. If the RBA loses control of AUD/EUR prices, AUD/USD is in trouble. The RBA would never never allow that to happen. AUD/USD is exactly EUR/USD but AUD is the follower. AUD was designed to be slower and the follower but its due to its location Vs EUR/USD. If EUR/USD drops say 100 pips and AUD/USD fell say 50 then be patient, AUD will follow. The same holds true for price rises. If EUR/USD jumps 100 pips and AUD/USD only 50. Be patient AUD will follow.
I will be with Dale in the Live Analysis Room at Fxstreet.com the 1st week of August. Given the opportunity, I will show how AUD and EUR work Vs Each other.
AUD/USD. AUD curve downslopes today. Points above to watch cause prices will struggle. 0.7373, 0.7374, 0.7376, 0.7381, 0.7389, 0.7397. Overbought begins between 0.7381 – 0.7397. Those are sell points. We want target at bottom of the range at 0.7324. Don’t hold out for the last pip to 0.7324 because its a range break. Below 0.7324 on a range break if seen then next 0.7275, 0.7253, 0.7250. Above range breaks, 0.7423, 0.7473, 0.7496, 0.7498. Look for the dead stop and reversal at 0.7397. If a violation occcurs then it happens at 0.7410. The point at 0.7397 is most vital today.
Brian Twomey Inside the Currency Market, btwomey.com