I have a few rules when it comes to trading and one of them is “be wary of Monday morning Asian moves” this is especially so if it is accompanied by a US holiday.
So it’s no surprise that on Wednesday morning the Australian open looks very different to yesterday when the US had not traded yet this week.
In many was it’s just the old “buy the rumor – sell the fact” trading axiom I was taught back in the late 80′s. Sometimes axioms are just axioms for a reason.
Which brings me to this mornings quick piece on the Aussie dollar which looks very close to support as you can see in the chart from FXPro below:
I’ve been saying for a while I think the risk rally is mature and we’ve been trading sideways for a week or so now. A break below 1.0629 is the key trigger for the Aussie dollar short term and maybe other markets.
I still reckon markets need a pause whether it’s time or price time will tell.
Have a great day.
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Please remember these are not recommendations for you to trade these are my views and I have my risk management tools and risk parameters that you do not have access to. Thus, this blog is for information only and does not constitute advice. Neither Greg McKenna nor Lighthouse Securities has taken your personal circumstances, objectives or financial situation into account. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation