Trading was a little slow this week for me, which began with the Martin Luther King Jr. holiday on Monday in the U.S. followed by the inauguration of President Biden on Wednesday.
Australia on Friday, posted disappointing retail sales (MoM). The AUDUSD tends to correlate well with U.S. equities and equity futures which signaled a risk off sentiment.
A short was found as the AUDUSD made a quick move up after the London open (the trap) and was rejected at yesterday’s low. The trade involved risking 10 pips for a potential 30 pips to our daily target at .7702… just above the figure.
Price moved lower through its Asian session low, where we took the risk out of the trade, but allowed for a retest of this level. Price continued lower, slowing down in advance of the U.S. open, before dipping further to close the trade at our target.
What has changed this past week? The U.S. is now under a new administration with President Biden. Vaccine supplies have been less available than desired, but are rolling out. The ECB event went largely as expected. Governor Bailey in Britain said that a decision has not been taken on negative interest rates, but it does make sense to have them in the toolbox…
Good luck with your trading, stay healthy and enjoy your weekend!
