Most currencies had volatile day on Friday, even if that did not translate into strong directional moves. Overall performance was mixed, with strong “whips” in both directional for the majority of Forex instruments. Probably the most interesting developments took place in the Yen pairs, but that is a subject for another post. The commodity currencies on the other hand were noticeably quieter, which is perhaps best visible on the Aussie-Dollar chart.
In the last post I discussed a consolidation are in the AUD-USD, with intentions of buying it on a breakout. My bias had been bullish and indeed the price moved higher from the range. Unfortunately for me, the rally stalled almost immediately. Few hours before the close, not wanting to carry the trade over the weekend, I closed it for a loss of 16 pips. However, that little surge above the 100 SMA on the hourly chart, should offer a good entry point if the AUD-USD makes it there again. This a level to watch for signs of a rally.
Other trades worked out better, especially the London opening positions. In several pairs, the price formed nice and narrow ranges, followed by explosive moves. In case of the EUR-USD, I managed to capture 23 pips in about one hour. For the lack of Euro specific news, media outlets reported this selloff as profit taking. Hmm… By this kind of logic, every price swing could be attributed to people bagging their profits. Interesting. Have a great weekend!