The AUD shot up following positive economic news releases during the Asian session. When an excessively large move happens in one session, it is very common for it to reverse in the following session. One of my favourite trades is to fade these excessive moves.
With UK and EUR news behind us the AUD begins to show weakness above its Asian session highs. A reversal trade sets up nicely for us and the intention is to ride it back down possibly to the Asian session low. First, we have to get through yesterday’s high along the way. As the US session news approaches we are closed out with the volatility on the candle before the ISM Manufacturing PMI. It’s always a good idea to protect your profits in advance of major news releases.
Good luck with your trading!
Back tomorrow if can find a trade. Last Friday there was lots of movement in the currencies, but we couldn’t find any entry points.