The current upper ceiling of the AUDUSD is 0.7070 based on the measured target zone by currency band method. The U-shape bilateral currency band indicates for the pair to bearish in medium term. The AUD multilateral currency band also indicate for bearish in medium term.
However, the Fed is continuing to refuel the market to defend the global economic slowdown by the Covid-19 pandemic and to maintain the financial stability. At such, USD will still to be weaker against G-8 currencies (EUR, JPY, CHF, GBP, CAD, NZD and AUD). USD is heading to a new "central rate/target rate/central parity" by the weakening of USD in the market, and at such the current upper ceiling for AUDUSD 0.7070 will be revisited and may tested and may align and realign to upward until G-8 currencies to reach the new central rate/target rate/central parity to USD.
At such, AUDUSD will be bullish and bearish by intraday and by weekly until the new upper ceiling above the 0.7070 to be reached, the equivalent rate to other major currency pairs. But, the AUD derivatives will continue to move to downward/bearish by medium term as confirmed by AUD multilateral currency band.
Long trade on AUDUSD shall be made from the lowest intraday low and below the intraday low of other major pairs and the target shall be narrower than other major currency pairs due to the AUDUSD is under "price adjustment", adjusting the price to NZDUSD, CADUSD (USDCAD), GBPUSD, EURUSD, CHFUSD (USDCHF), JPYUSD (USDJPY).
The bearish on AUD derivatives is driven by the "narrower" appreciation rate by USD to AUD than NZD, CAD, GBP, EUR, CHF, JPY.
However, the Fed is continuing to refuel the market to defend the global economic slowdown by the Covid-19 pandemic and to maintain the financial stability. At such, USD will still to be weaker against G-8 currencies (EUR, JPY, CHF, GBP, CAD, NZD and AUD). USD is heading to a new "central rate/target rate/central parity" by the weakening of USD in the market, and at such the current upper ceiling for AUDUSD 0.7070 will be revisited and may tested and may align and realign to upward until G-8 currencies to reach the new central rate/target rate/central parity to USD.
At such, AUDUSD will be bullish and bearish by intraday and by weekly until the new upper ceiling above the 0.7070 to be reached, the equivalent rate to other major currency pairs. But, the AUD derivatives will continue to move to downward/bearish by medium term as confirmed by AUD multilateral currency band.
Long trade on AUDUSD shall be made from the lowest intraday low and below the intraday low of other major pairs and the target shall be narrower than other major currency pairs due to the AUDUSD is under "price adjustment", adjusting the price to NZDUSD, CADUSD (USDCAD), GBPUSD, EURUSD, CHFUSD (USDCHF), JPYUSD (USDJPY).
The bearish on AUD derivatives is driven by the "narrower" appreciation rate by USD to AUD than NZD, CAD, GBP, EUR, CHF, JPY.
Note
Note
The AUDUSD central rate at upper ceiling strongly depended and AUSUSD pressured down from below the 0.7070. The AUD multilateral currency band price dynamics also strongly pressured down. At such, AUD will continut to be weaker and the expectation to break 0.7070 should be ignored. Short trade resumed to be more favorable.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.