JLS AUDUSD Target Zone 0.7390/0.7400-0.6400/0.6500

Likely good to trade

Comment:

About 200 PIPs price fluctuated to downward and the expected turnaround time to target 4-6 weeks.

Comment:

Trading position is managed to risk free by placing stop loss at entry rate, and the trade will be hold to target and/or to be closed by "tranche" as considered to be feasible

Comment:

Adding more portfolio on AUDUSD after protecting the first portfolio at risk free

Comment:

I still target 0.6500 with a combination of single short trade with compounding approach and multiple short trade tranches

Comment:

Short trade still active to target

Comment:

The CHF, JPY and EUR carry traders are carrying the AUD by driving the AUDCHF, AUDJPY and AUDEUR to upward by their interest rate differentials. Their trading activity results the slowing on AUDUSD to downward.

However, their carry trading activity less likely will push AUDUSD to revisit her upper ceiling 0.7400

Comment:

The AUDUSD and NZDUSD hammered down by their interest rate differentials to USD. It is expected to be followed by the GBPUSD and EURUSD to downward by their interest rate differentials to USD, and USDCAD, USDJPY and USDCHF to upward by their interestt rate differentials to USD.

At such, the current short/sell of NDUSD, AUDUSD, GBPUSD, EURUSD and the long/buy on the USDCAD, USDJPY and USDCHF will resume to follow their medium term exchange rate target zone trends.

However, risk remains to be seen from JPY and CHF carry traders but at lesser impacts on the prices.