Bernanke: Another case of “sell the rumour buy the fact”? Buying AUD/USD dips is obvious trade!
It looks like the market might have even gotten itself a bit short of the USD heading into the Bernanke testimony and now we are getting the post-event square up. USD/JPY has led the way and my stops loss order in EUR/JPY is unfortunately getting very close (and my AUD/USD longs are also looking more vulnerable).
My reading is that the short-term market was short USD and is squaring up but that the testimony was risk-positive hence the rally in the Yen crosses. Once the dust dies down, AUD/USD should be the big beneficiary and I will add on any dips below .9100 for a rally to .9350 and beyond.