AUD/USD Below 1.0000 Requires More than an RBA Rate Cut
Not all volatility emanates from risk-based trends. AUDUSD has shown a significant drop to the bottom of a 10-month range floor and AUDNZD has broken a seven-week bear trend. The surprise RBA rate cut played a strong hand in these significant technical developments, but does this event risk have the necessary influence to upgrade a sharp swell in volatility into a lasting trend? In today's video, we discuss key event risk (the RBA rate decision, a RBNZ intervention announcement, a Cyprus bailout debate, BoE rate decision) and whether the headlines can circumvent the all-encompassing influence of 'risk trends'. This is critical discussion for those weighing the probabilities of a clean AUDUSD break below 1.0150, EURUSD finding follow through on a break below 1.3000 and USDJPY clearing 100 amongst other picturesque setups.
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.