We had a crazy week last week in the market due to some serious fundamental shifts in the market. The AUD/USD took a serious nose dive through the 1.0150 market which was a low in a range from 1.0150 to 1.0600 on the AUD/USD for the past year (see the video below). First, RBA (Royal Bank of Australia) announced a rate cut of 25BP on their overnight interested rates. THEN, the US FED starts talking about an $85 Billion “bond buying program” to stimulate the economy. Both where bad news for the AUD/USD which dropped to parity (1.000) and is most likely going to continue dropping right to the .9800 range.
In this video I go through which caution on trading the USD cross pairs over the next few days until the market determines if the FED announcement created a short-term emotion strengthening of the USD….OR…if this could be a significant game changer where the market turns into a more “risk off” environment and starts investing into USD again.
Watch the video completely as I analyze the charts and look for some great opportunities to trade.
In this first video of many entitled Forex Trading for Dummies we are going to dig into the basics of trading with the trend, trading off of key levels and trading from the daily charts. Enjoy the video.