AUD/USD: Levels, Ranges, Targets

First problem is EUR/AUD correlates to EUR/USD 18% and negative 76% V AUD/USD. What drives EUR/AUD is AUD/EUR as it correlates to AUD/USD at + 76%. This is typical in EUR/AUD as is the same phenomenon seen in the NZD/USD and EUR/NZD relationship. So AUD/USD correlates to AUD/EUR 76%, not bad for this relationship.

Most important speech at the RBA is Assistant Governor of Financial Markets, Guy Debelle. He speaks May 26 and May 27th this week. Debelle is head of the ongoing movement to revamp Australia's Interest rates. Its the movement of all central banks since early 2014 but Australia is ongoing and catching up to the remainder central banks.

Australia is strictly a market oriented nation to its core and derived from its early beginnings in the early 1900's. Australia's interest rate system is not nor ever was complicated as other nations such as the Non market oriented ECB. So the catch up involves minor changes rather than wholesale changes such as the ECB's radicalizations.

AUD/USD at 0.7187 is not the historic bottom. The bottom was seen in 2001 at 0.4773 and 0.6000 at 2008 crisis times, although the 0.6000 crisis 2008 bottom brought RBA intervntion. The historic view was AUD/USD at 2.1000 in 1919 and throughout the 1920's. Since 1920's, the 96 year downtrend resumes.

From current 0.7187, big break points above to change shorts to long are located at 0.7326 and 0.7428. Further out is the next vital break at 0.7800's. Any prices higher and below 0.7326 are corrections and sell rally trades.

AUD/USD Bottom 0.7140. Range breaks above 0.7203 and 0.7256.

Below Range breaks 0.7150, 0.7098 and 0.6994. Note range break at 0.7150 and bottom at 0.7140.

Upper target 0.7210 and 0.7220, watch watch 0.7203 range point which means 0.7203 must break and its likely first target at 0.7210 may converge with 0.7203. Good sell point 0.7203.

AUD still has room to run on the downside. Look for 0.7098 in days ahead then 0.6994.