Inside the Currency Market: AUD/USD

The MXN trade performed as written, now price sits at 16.12 and at the exact position mentioned. MXN offers much to currency prices so a continued focus will be the way.

AUD review. The RBA never signaled a rate hike or drop. As written many times regarding certain quirks in each currency pair, AUD typically signals an RBA OCR hike or drop 5 days before. The statement is historically accurate since OCR was first introduced in 1969. An OCR movement wasn’t seen. While the RBA signals 5 days before, 5 days after an OCR move is very volatile as Australia markets settle into the new levels of OCR. What we see today is volatility directly from the exchange rate rather than from Australia markets so a disjunction exists in aligned prices. What we will see is more volatility as the price disjunction settles. Typically 5 days is the maximum number of days for AUD to settle. What the RBA offered upon announcement was a free trade.

AUD/USD jumped upon announcement from 0.7290 – 0.7393. Why? Look at range bottoms, 0.7255, 0.7252 and a giant bottom at 0.7228. Then comes 0.7302 and target at 0.7399. The signal all around was a big long move to come. I speak most respectfully when I say I’ve been at this for nearly 12 continuous years. I never settled in 12 years on any one method or model because I was as much interested in the how’s and why’s of a currency price movement as much as a method to make profits come easier. So I’ve always grown year after year as knowledge expanded. I will grow for the next 12 god willing from the Forex Gods. So working from the current most advanced, most accurate model to date, I can see ever so clearly what’s going on with AUD. My model is the exact model used by every central bank the world over.

AUD/USD strategy. The bottom and target currently is found at 0.7338 upon a break of 0.7375 and 0.7376. Ranges above 0.7449, 0.7450, 0.7496. Range below 0.7302. Full range 0.7302 – 0.7449, 147 pips.
AUD is overbought at 0.7399. Point 7399 is the sell point to target 0.7338. Points on the way down 0.7384, 0.7376, 0.7375. Should the next range break at 0.7449 then the recommended short is delayed but not nullified.

Brian Twomey, Inside the Currency Market, btwomey.com

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