The measured width of the previous medium-term exchange rate target zone on AUD/USD about 7.5 % (0.7150/0.7750) and estimated to 600 PIPs. After visiting the upper medium-term band 0.7750, the pair pressured down for visiting her central band/central parity and break that level down to 0.7350 for 5 % or estimated to 400 PIPs, wider than 50 % of the medium-term target zone, and defended near and below the central band.
The 0.7350 becomes the new lower medium-term exchange rate target zone and the AUD/USD resumed to move to upward by breaking the previous upper medium-term band 0.7750 up to the level of 0.7830. Based on the previous width of exchange rate target zone 7.5 % (0.7150/0.7750), then the estimated new upper medium-term band is 0.7950. AUD/USD has been aligned, realigned and conntinuously realigned to upward direction to confirm AUD will be stronger than USD in “long-term”.
According to the principle of managed float of the international monetary system, AUD/USD is freely to fluctuate interior the 0.7350/0.7950 in medium-term with directional fluctuation to upward for visiting the 0.7950.
As a result, trading operation for AUD/USD shall be consistently to buy/long from the direction of 0.7350 to 0.7950 in medium-term. The medium-term exchange rate target zone could be traded by the daily, weekly, monthly and short-term target zone interior the medium-term target zone. And, the daily, weekly, monthly or short-term trades shall be consistently to buy/long from their measured lower bands to their measured upper bands (short/sell from the upper bands to the lower bands against the principles of monetary trade).
MEDIUM-TERM TRADING OPERATION:
Target to Trade: 0.7950
Entry Rate at Lower Band: Will be Updated from Below Current Rate
Exit Rate at Upper Medium-Term: 0.7950
Stop Loss Below New Entry Rate: Will be Updated
WEEKLY TRADING OPERARTION:
Target to Trade: 0.7950
Entry Rate at Lower Band (Weekly): Will be Updated
Exit Rate at Upper Band (Weekly): Will be Updated
Stop Loss Below Lower Band (Weekly): Will be Updated
Will be updated regularly based on measured entry rates by their weighted average rates at lower bands for trading to target upper bands of the upward movement on the medium-term . The performance of this analysis could be evaluated by using this live-chart made available by Tradingview.com.
AUD/USD, AUD/JPY and AUD/CHF could be pressured down to their lower daily or weekly bands prior to resume to move to upward and at the same time the EUR/AUD could be pushed up to her upper daily or weekly bands prior to resume to move to downward. Their measured average weighted rates at lower bands for AUD/USD,
AUD/JPY, AUD/CHF (daily or weekly) and the equivalent average weighted rate at upper band for EUR/AUD will be the entry rates to long/buy AUD/USD, AUD/JPY, AUDCHF and to sell/short EUR/AUD. Unless their measured average weighted rates to be measurable, risk remain possible to trade.
AUD/USD, AUD/JPY, AUD/CHF move to upward by this morning by not reaching their average weighted rates at lower daily/weekly bands and at the same time EUR/AUD moves to downward by not reaching her equivalent average weighted rates at upper daily/weekly band. All the movements are interior the medium-term exchange rate target zone, but those movements could be at risk by revisiting their lower daily/weekly bands and equivalent upper daily/weekly band before they resumed to move to upward (AUD/USD, AUD/JPY, AUD/CHF) to visit their upper medium-term target and to downward (EUR/AUD) to visit her lower medium-term target. Daily/weekly bands trading not yet recommendable until restored, except the medium-term exchange rate target zone.
AUD/USD visit the level of 0.7943 and lower than projected 0.7950. Thereafter AUD currency band under pressure by pressuring AUD/JPY and AUD/CHF and at the same time EUR/AUD pushed up. The monetary analysis indicates that AUD/JPY and AUD/CHF remains to move to upward, and similarly the EUR/AUD remains to move to downward. As a result, AUD/USD will break the level of 0.7950 by her equalizing rate with AUD-pegged pairs. The upward movement of AUD by this morning is daily band and very difficult to measure or more difficult than weekly band.
AUD heading to target.
AUDUSD HIT TARGET 0.7950.
AUD/USD reach the target at 0.7950 and stop. The pair is waiting her average weighted rates with AUDJPY, AUDCHF and EURAUD before pressured down to lower daily/weekly bands and then resumed to move to upward direction. The upper medium-term target for AUDJPY already assessed (read AUDJPY) as well as AUDCHF and the lower medium-term target for EUR/AUD.
AUD/JPY as well as AUD/USD and AUD/CHF heading to upward as projected by limiting to downward pressure to lower daily band. The upward movement supporting the AUD/USD continues to move to upward by their weighted prices.