AUDUSD setting up for Aussie strength and Dollar weakness as we head into RBA next week. This is what I was referring to in the EURUSD post. We can’t buy AUDUSD and sell EURUSD. This trade setup tells me that EURUSD is probably not going to move lower – at best sideways off of a weak Euro and a weak Dollar, though a lot depends on the choice of the Fed chair today and NFP on Friday. So how would one know which trade to favor, because you can’t have both. If Dollar is weak I favor long AUDUSD due to the carry. If Dollar is strong I favor short EURUSD due to the carry. So to determine what the Dollar is doing I just have to keep an eye on Dxy and Gold.