Here’s the AUD/USD trade for RBA.
Short 0.7227 and 0.7237 to target 0.7080.
Highs 0.7208, Lows 0.7146.
A 4 hour trade now runs + 63 Pips.
AUD/USD dropped 19 pips before the 0.7227 entry.
A further drop in AUD/USD is dependent on EUR/USD and most specifically EUR/AUD.
EUR/AUD vital high/low point is located today at 1.6459. However AUD/EUR high/ low point is located at 0.6079 or EUR/AUD 1.6450.
EUR/AUD’s crucial area between 1.6459 and `1.6450 is a 9 pip zone and not tradeable. This means EUR/AUD requires a break of 1.6450 or 1.6459 in order to trade EUR/AUD and to determine AUD/USD’s further direction.
if EUR/AUD breaks above 1.6459 then AUD/USD drops further. If EUR/AUD drops below 1.6459 then AUD/USD rises again. AUD/USD is crucially dependent on AUD/EUR for direction and pip movements and this relationship will never change.
AUD/USD for today’s day trade contains a top at 0.7193 and 0.7198 and a good entry for shorts.
EUR/AUD however contains a correlation problem as EUR/AUD correlates to both AUD/USD and EUR/USD at -97% and -98%. EUR/AUD is a lost currency price but AUD/USD and EUR/USD Correlate at =98%. EUR/USD for the week will drop.
AUD/USD for the week will drop and shorts is the way as posted for EUR/USD on Sunday.
Seen to trades week after week and over many years is my pen, paper and calculator at work.