After analyzing Gold our next logical step is to take a look at Aussie. Same same but different. Same same, AUSUSD at WS2 different, not coming up off a monthly reversal pivot with Bears likely to sell at WPP and take it down to MM1, which is the bearish target for the month. Though that is the case technically, Bulls are paying careful attention to reversals. Especially with Gold and Copper price action and the subtle change in RBA communication last week.
“Most notable from the RBA’s decision statement was an increased degree of comfort over the Australian dollar. As highlighted by our Chief Economist Bill Evans, while the TWI has only fallen 1.8% since the November meeting, it has now declined
more than 5% since its peak in July. The absence of comments in the statement such as November’s “the higher exchange rate is expected to contribute to continued subdued price pressures in the economy. It is also weighing on the outlook for output and employment” signals a renewed ease with the level of the AUD. Discussion of the housing market also carried a more subdued tone, the outperformance of Melbourne no longer mentioned. ” Westpac
Predicted Weekly Pivots
Note. Pivot points are just projections and may differ at market open. Calculated using high, low and close of the previous week as per FXBootcamp Guide to Strategic and Tactical Forex pg. 668