Today’s poor Non-Farm Payrolls data caused a wild, if short-term reaction on the market for all USD pairs, which is typical, at least in my experience for the years I’ve spent trading.
EUR/USD moved sharply north and then returned to its old levels, USD/CAD continued its steadfast rising despite the poor data, AUD/USD didn’t even move all that much – about 60 pips – and USD/JPY almost didn’t react at all and continued its sideways consolidation, which is an indication there will be a new move to the downside.
Why am I saying all this? Because I have always been convinced that news events, with few exceptions, are capable of causing strong, but short-term changes on the market, after which every currency pair continues in its previously chosen direction. For me the charts are the most important thing – because what we see on them forms the mood and expectations of the people participating in the Forex market.
Which is why for me it’s more important to be able to analyze the charts properly, rather than be interested in the details of the economic data causing every short-term disturbance on the Forex market.
Good post!
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