Overall the USD weakness was evident today but the reason for the selling was not obvious to me. Gold was very strong and equity markets were able to move higher with the exception of London. The GBPUSD moved sharply higher and did almost twice its range.
Having shorted the AUDUSD yesterday, today it was a long position risking 12 pips for a potential 41 pips to our daily target at .7156.
Price moved higher and began to roll over just as the London session was ending where our trade was closed.
Yesterday the USD didn’t have a lot of strength, but we found a short setup on the AUDUSD that we liked risking 6 pips for a potential 51 pips to our daily target at .7104. Volumes were much lighter with North America away on a holiday. Price moved down and our profit stop was hit well short of our target.
I’m not convinced the broad based USD selling today will continue, but I may be wrong. The U.S. – China trade talks resumed in Washington today. Events risks this week include the FOMC minutes on Wednesday and ECB President Draghi speaking on Friday. Canadian and Australian Governors Poloz and Lowe will be speaking on Thursday.
Good luck with your trading!
