Hope you’re making sense of all this whip-saw trading

We have seen some quite wild moves in all pairs over the last few hours, quick swing traders will undoubtedly find interesting 50/70 pip trade opportunities, but the rest of us must sit back and decide what to do. Usually an indication that the Fed will keep stimulus going should be bearish for the USD and bullish for risk trades; therefore AUD/USD would seem like the obvious trade. But with EUR/AUD up sharply from yesterday and AUD/JPY down sharply, the market doesn’t yet seemed to have completely shaken its bearish-AUD stance.

I have a feeling that USD/JPY might get very interesting in coming sessions and I don’t think the danger is to the topside!

Have a good day.


  1. Great advice to cover EUDAUD short at 1.39 Thank you again! The other half is limping along – its loss covered by AUDUSD longs and gold.

    Extraordinary volatility overnight augurs poorly for risk trades as you say. Expect EUR to weaken eventually once the dust settles. So will re establish EUDAUD short around here.

  2. USD/JPY also worth a look James? Might re-visit levels below 95 in coming days? Agree that EUR/AUD shuld fall again sometime soon but 137/144 likely range there for extended period

  3. Hi Sean, there is a 38.2% fib resistance for gold at around 1270 and if it breaks I believe that will boost all commodity currencies. Interested to know whether you are still suggesting sell AUDUSD at 0.9325?

  4. Hi Tom, I will lighten up if we get there but only in hope of reloading on dips. I think we will see 9650 in coming weeks and Gold will be back close to 1400 (in my very biased opinion 🙂 )

  5. I took profit on my EUR/USD and EUR/JPY shorts last night and I can see that was the right thing to do ahead of all this excitement. And we even have the BOJ meeting on top of all this?
    By the way the EU worked out just as I thought, the triangle break was false and we are heading for the upper trendline again, so 1.20 could still come 🙂

    I’m flat and happy for that, a long weekend sounds like an idea!

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