From my analysis of AUDUSD 1M chart, which is not for trading purposes, but only for knowledge. I see bearish signs which will continue until end of 2016. I placed the XAUUSD on chart to show you the POSITIVE correlation with GOLD.
Why would an Australian pair be related to GOLD? Because it is the 3rd largest gold producer in the world at around $5 billion dollars per year. As gold goes AUDUSD will go too. That just means that if more countries or USD are buying gold then AUDUSD will go up, if USD is NOT buying gold then AUDUSD will go down. Please look at chart.
From my observations, the following will continue until end of year. Bearish price action. Look at RSI> below 50 since 2013 and heading down. Ichimoku cloud is above price action & lagging or Chikou span (pink line) is slowly makes a sideways moving towards current price action, related to current price action holding in same monthly area. Also, note that I think an Elliot 1-5 down is still currently in progress, with 4-5 wave down having started this month (MAY). In blue oval area, I see a Bearish evening star (three candlestick pattern) by #4 on chart- which signals a major top reversal or bearish situation.
When trading either GOLD (XAUUSD) or AUDUD, just remember that their is a POSITIVE correlation between both.
In my opinion, this AUDUSD pair & XAUUSD or gold, will be in a downtrend until end of year. Long term MAJOR support on this chart show it is around: 0.65000 which happened in 10/1/20018. I expect this pair will be going to that level--- UNLESS----- USD has an INFLATION situation an starts to buy more GOLD, then all will be BULLISH with this currency pair.
Why would an Australian pair be related to GOLD? Because it is the 3rd largest gold producer in the world at around $5 billion dollars per year. As gold goes AUDUSD will go too. That just means that if more countries or USD are buying gold then AUDUSD will go up, if USD is NOT buying gold then AUDUSD will go down. Please look at chart.
From my observations, the following will continue until end of year. Bearish price action. Look at RSI> below 50 since 2013 and heading down. Ichimoku cloud is above price action & lagging or Chikou span (pink line) is slowly makes a sideways moving towards current price action, related to current price action holding in same monthly area. Also, note that I think an Elliot 1-5 down is still currently in progress, with 4-5 wave down having started this month (MAY). In blue oval area, I see a Bearish evening star (three candlestick pattern) by #4 on chart- which signals a major top reversal or bearish situation.
When trading either GOLD (XAUUSD) or AUDUD, just remember that their is a POSITIVE correlation between both.
In my opinion, this AUDUSD pair & XAUUSD or gold, will be in a downtrend until end of year. Long term MAJOR support on this chart show it is around: 0.65000 which happened in 10/1/20018. I expect this pair will be going to that level--- UNLESS----- USD has an INFLATION situation an starts to buy more GOLD, then all will be BULLISH with this currency pair.