Brian Twomey
Brian's Investment
Established in previously written AUD and Neutrality was 2 vital points to AUD/USD and cross pairs: AUD/USD is a neutral currency and consistent to USD/JPY, GBP/USD, EUR/USD. Speculation to USD/CHF and NZD/USD also follows neutrality to its cross pairs as currency prices serves as an interlocking and deeply related system.
Secondly, to repeat, AUDGBP at GBP/AUD reciprocal 0.5000's is not only the bottom currency but it lacks any fit to the AUD complex and fails to serve as a true AUD bottom.
AUDGBP belongs exclusively in the GBP universe as GBP/AUD exchange rate 1.8800's to allow trading in wide ranges between GBPCAD and GBPNZD.
AUD's bottom is not only AUD/EUR but AUD/EUR serves perfectly to AUD/USD and AUD/EUR's reciprocal as EUR/AUD. For EUR/AUD, AUD/USD and AUD/EUR then establishes itself as a triangulation and 3 trade combination.
AUD/EUR Vs AUD/GBP
AUD/EUR as bottom currency serves the purpose to normalized market trading. AUD/GBP against a 1000 point exchange rate differential to AUD/EUR becomes the bottom currency in any market crash scenario either derived from the entire currency market or from Australia's financial system. AUD/GBP then serves as the absolute bottom to rescue AUD/USD prices and its cross pairs. Why the safety measure to a rescue is to prevent a currency price to achieve 0 as this means a nation is completely bankrupt.
AUD/CAD Vs AUD/NZD Top
AUD's cross pair top is AUD/CAD. Why not AUD/NZD as the top currency is because the 1.0000's exchange rate and 0.9600's reciprocal lacks a fit to AUD and its cross pairs. In many instances throughout a trading year, AUD/NZD's reciprocal factors to AUD/CAD but not at this time which means the relationship is off kilter.
Secondly, AUD/NZD serves AUD's purpose as a forecast currency. The number 1 and 2 currencies forecasted from AUD/NZD are AUD/CAD and GBP/CAD. Speculation exist NZD/CAD also forecasts.
From a total of about 60 combinations tested, AUD/CAD forecasted 18 times Vs 15 for GBP/CAD. Most instances both currencies factored together in the same test.
Further, EUR/CAD and USD/CAD each forecasted 2 times. Why EUR/CAD failed to forecast is because EUR/CAD is automatically built into AUD/USD and AUD/CHF's reciprocal price. If AUD/USD is neutral inside AUD cross pairs then naturally, EUR/CAD must also serve neutrality as USD/AUD. Similarly, USD/AUD and AUD/NZD are naturally built into USD/CAD's price. The test confirmed what was already known and how to arrange a USD/CAD forecast.
The relationship AUD shares to CAD is strong, deep and vital to trades, forecasts and overall currency market prices.
AUD/NZD Vs AUD/EUR
The clear driver to overall AUD prices is AUD/EUR, EUR/AUD as reciprocal and for many reasons. AUD/USD, AUD/CHF and AUD/JPY align more closely to AUD/EUR than AUD/CAD or AUD/NZD. The evidence is seen because from a 0 point exchange rate perspective as shown by currency brokers, the vast majority of exchange rate averages factors from low 0.7000's to higher 0.7800's. AUD/CAD and AUD/NZD operate on higher averages from 0.7000's.
What 0.7000's signify is the AUD relationship to USDCAD as reciprocal and built into the interlocking system by osmosis. A USD/CAD forecast may easily derive from AUD. Further, 0.7000's represent tops, bottoms and targets for middle AUD pairs.
AUD/EUR as bottom is located inside the EUR/AUD price and EUR/AUD as wide range currency far outpaces AUD/NZD and AUD/CAD combined.
AUD = AUD and Same Principle as GBP =GBP
Each AUD pair shares its own space either as a reciprocal exchange rate or straight AUD and exactly similar to GBP, AUD exchange rates never violate the next exchange rate space. This means AUD drivers may derive from AUD/EUR as much as AUD/NZD or any pair in between.
AUD ranges from 0 point exchange rates operates on a step system from AUD/EUR at the lowest range to AUD/NZD at widest range. Reciprocals however are quite different and contain far higher ranges than straight AUD pairs. AUD is a self contained financial instrument and trades on purpose within its own universe.
AUD Forecasts
Exactly similar to GBP, exact entries and targets involves minor steps. To miss this stage of execution fails to forecast AUD or any currency pair associated to AUD correctly. The exact same stops are found in GBP and a requirement to forecast GBP pairs.
Forecasts
All AUD and AUD/NZD
= AUD/CAD and AUD/CHF
Minus AUD/NZD and AUD/GBP =AUD/CHF and AUD/CAD
AUD/NZD Re arranged = AUD/GBP and AUD/CAD.
AUD/NZD re arranged, minus AUD/GBP = AUD/CHF and AUD/CAD
So not to totally lose the crowd, about 60 more of the above combinations were ran as reciprocals and straight exchange rates to reveal exchange rates predict exchange rates.
If a particular currency pair is the trade focus then what must be known is from which pairs to forecast. A perfect trade forecast takes about 2 minutes, literally 2 minutes and literally perfect.
The term trade refers to weeklies and bi weekly in certain circumstances. Forecasts are perfect and beats math, trade tools and whatever else traders use to trade. Possibly I will write the 60 + forecasts on my site.
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.
Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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