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.