Since 2011 the Aussi/dollar pair has been on a corrective WXYZ Elliott Wave structure on the weekly chart. On the bigger time frames (weekly, daily and 4-hour) AUD/USD has been moving on a clear down trend. So to enter a trade you must ask yourself, which side would you trade this pair?
Whether the Reserve Bank of Australia wished to keep its powder dry or whether it simply did not want to ease at back-to-back meetings, the impact was to drive higher the value of the Aussie dollar Tuesday and push down uncertainty in the forex options market.
It’s been an interesting start to what promises to be a interesting week in the forex market. The biggest story of Monday’s trade thus far has been the continued strength of the dollar despite disappointing data in the world’s largest economy.
It’s going to be such an eventful week for the Australian dollar that it may set the tone for weeks to come. The most important event for the Australian dollar however, will be Tuesday’s monetary policy meeting at the Reserve Bank of Australia (RBA).