AUD/USD: Levels, Ranges, Targets

The focus on exchange rates as is the orientation for most is not only absolutely wrong but its what leads to the hits or misses routine for a vast majority, including many hedge funds. My words are backed by written facts in my notebooks over a 12 year period. Most don’t know or understand exchange rates prices, movements, purpose and orientation Most can’t know because its not exchange rates that shares the commonality between and among nations. So here’s guys trying to hit moving targets that lack connection or commonality nation to nation in a one size fits all approach. AUD is not NZD and EUR is not AUD or NZD. Three separate nations can’t match against 3 separate national orientations. My long time and ongoing work on interest rates and curves is astounding and groundbreaking. As new research information is learned, we upgrade our curves and orientation to maintain perfect accuracy. So groundbreaking and more accurate is our approach, I have yet to see my work in print by big banks and I receive tons of interest rate research.
My work and latest upgrades allows us to not only hit targets, but we know tops, bottoms ranges, pip movements and points in between. This isn’t new, what’s new is easier ways to calculate so we gain speed in our trades. We are able to follow and know a complete price outline so to hit multiple targets within a price path. Our focus is price but we maintain a price view by understanding the overall structure. Structure allows ability to hit multiple currency pair targets as was done here many times. Structure is most important because we gain the same advantage as the market whereas most one size fits all guys lose as the market price beats these guys by 20 – 30 pips. And they aren’t aware they were beat.
Think about trading as a musical instrument. To play accurately is to know the proper notes and chords then melodies are derived from notes and chords All together, means perfect songs are played. Enough.

AUD/USD. Bottom. 0.7511. Ranges above 0.7536, 0.7587, below 0.7486, 0.7436. Target above 0.7549, tough area here and assumes range break 0.7536. Use 0.7536 as failure point to get short to target bottoms at 0.7511. Correlation with EUR/USD is positive 13%, its low but improving from negative. AUD becomes out of bounds at 0.7549 but has ability to spike to 0.7562. We’re pretty much in a 0.7511 – 0.7562 range. Pip range today 21 pips long term, 17 short term. Big points above 0.7535 and 0.7540. EUR is heading lower over time as is the situation for AUD. Below 0.7511, we want to hit 0.7486 target next.

Brian Twomey, Inside the Currency Market, btwomey.com

Advertisements

2 thoughts on “AUD/USD: Levels, Ranges, Targets

  1. Brian, I follow your posts and have had good success and I thank you, but I do struggle with understanding some of it. Is there a way for me to get a better understanding? Thank you

    1. Hi David, Thank you very much. Tell me how I can help. Best way to understand is view daily price movements in 50 pip increments above and below but be aware of range points within the 50 above and below framework. 50 pips is roughly the free reign allowable starting points but ranges more control the allowable free reign movements. Cross pairs are different, they offer about 100 pip starting points above and below but again ranges become the dominant force to stop or help what is allowable. A range break says much more about a price direction than a daily range allowable movement. AUD today has a 21 pip total free reign movement from about 0.7512, that’s total 0.7533 – 0.7491 but the bottom is blocked at 0.7511 so we know automatically we have longs from about 0.7512 to 0.7533. What is 0.7533, we its below the range point at 0.7536 and below the target at 0.7549. The free trade today is long from 0.7512 – 0.7533 ish then look for reversals short to the next mid point of this range at 0.7522 then watch close for continuation to stay short for a few more pips or bail out if price struggles. 21 pip free reign is well below the 50 and 60 pip daily free reign we’ve seen lately from AUD. The free reign pip movements are derived directly from central banks as is all my trades. Central banks inform daily what, how and direction of their currency pairs and how to achieve targets. Some days like today, its slow because they offer nothing in movements. Other days, we are on fire with great movements. I hope this explanation helps rather than confuses. What I could do is post EUR/USD and outline exact price paths and tell you exactly what to do to hit multiple targets long and short. Maybe it would help to see prices in action.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s