A Strange Market Today
The forex market seems a bit strange today. The price action in most forex pairs feels weird since it´s been all over the place if we take the major forex pairs as a whole.
The risk currencies, in particular, don´t seem very coordinated. Risk currencies include the commodity Dollars (NZD, AUD, CAD) and the GBP from time to time.
The H1 forex charts paint a very clear picture of these uncoordinated moves. USD/JPY and EUR/USD have been declining, while the GBP and the CAD have gained ground against the Buck. The best example, though, that we can find is the Aussie and Kiwi.
We opened a sell forex signal in AUD/USD a while ago, since the USD had already completed a retrace lap overnight. The price slipped down for about 10 pips but as you can see now, it has reversed and settled around the opening level.
The Kiwi, on the other hand, dived for about 40 pips after we opened the AUD/USD signal. So, we can say that the NZD and the AUD have diverged today, which is a very uncommon occasion.
When there are no economic events scheduled, the forex market usually moves all together, for or against the USD. However, today the correlation seems to have been lost. All currencies seem to have their own mind today.
This sort of market is dangerous, and the failure to reach the take profit for our signal in a time when the Buck was enjoying some good demand is a warning sign. We´ll try to be careful since we´re back on track with our forex signals and we don´t want to ruin that.
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