On July 2, the Reserve Bank of Australia (RBA) cuts rates for the second time in 4 weeks. The first time has been on June 4.
Very interesting is the AUD situation, I will analyse the currency pair Aud-Usd trying to describe the future scenario.
The current price might be an excellent level where to sell Aud-Usd, but there is an aspect to take into account. The good moment of the gold that has hit two times (double top?) $1,440.
The Australian economy is "very sensitive" to the gold, so a continuation of the appreciation of the yellow metal could push speculators to buy the Australian dollar.
Thus, we cannot exclude a break of Aud-Usd of the resistance because, in the short-time, the currencies follow the speculation. But for sure, that would represent (with the right market entry) an excellent opportunity to sell the currency pair (excess of price).
My strategy is the following: I start to sell Aud-Usd, using only a part of the position, in the area 0.70250. That is what I call the "spy order." Usually, I use for the spy order 1/4 of the whole position (never more than 1/3).
If the price rebounds on the resistance and then falls, even though with a little position, I am however inside the trade. In case Aud-Usd breaks the resistance, I have 3/4 of the position to use for selling the currency pair at a better level, with a lower risk.
Very interesting is the AUD situation, I will analyse the currency pair Aud-Usd trying to describe the future scenario.
The current price might be an excellent level where to sell Aud-Usd, but there is an aspect to take into account. The good moment of the gold that has hit two times (double top?) $1,440.
The Australian economy is "very sensitive" to the gold, so a continuation of the appreciation of the yellow metal could push speculators to buy the Australian dollar.
Thus, we cannot exclude a break of Aud-Usd of the resistance because, in the short-time, the currencies follow the speculation. But for sure, that would represent (with the right market entry) an excellent opportunity to sell the currency pair (excess of price).
My strategy is the following: I start to sell Aud-Usd, using only a part of the position, in the area 0.70250. That is what I call the "spy order." Usually, I use for the spy order 1/4 of the whole position (never more than 1/3).
If the price rebounds on the resistance and then falls, even though with a little position, I am however inside the trade. In case Aud-Usd breaks the resistance, I have 3/4 of the position to use for selling the currency pair at a better level, with a lower risk.