Saturday, August 27, 2016

The Market Finally Started Moving Thanks to Janet Yellen

The long-awaited speech of the FED Chair Janet Yellen in Friday had the expected result and it gave the market the logical push, causing all currency pairs to move in favour of the USD.

Some of these pairs moved in a predictable way – for example, AUD/USD started falling after the two bearish pinbars that formed on the weekly time frame.

The GBP/USD movement wasn’t particularly surprising either. Before Yellen’s speech there were a pair of spinning top bars on the daily time frame below the resistance at 1.3280 (the pair failed to reach 1.3300 after all) which were a good reason to believe that the corrective move to the upside was over and that there would be a new drop.

The situation with the USD/CAD was interesting – many people thought that the drop would continue, but that didn’t happen. In my opinion, at this stage the move to the downside is over and we are likely to witness a new move to the upside towards 1.3250 and even a new high above 1.3300.