No One Can Escape the Stampede for Safety
Skerdian Meta • 1 min read
The charts of the forex majors this morning look different from most of the days so far this year. It´s the first time this year that I see the Buck substantially higher in the morning, after an impressive move overnight.
EUR/USD is about 100 pips lower at 1.0660s, USD/CAD is threatening 1.32, while Cable is about 300 pips lower from a few days ago.
USD/JPY finally broke the 112 support level in the afternoon yesterday but that´s another story and we´ll look at this forex pair in our next updates.
So, it´s clear that there has been some sort of run for safety. I don´t know the reason because I can´t see anything important anywhere which might have taken place overnight.
We only had the RBA (Royal Bank of Australia) overnight delivering their monthly statement and keeping the interest rates unchanged. AUD/USD jumped about 40 pips during that time but it wasn´t enough to hit the take profit target for our AUD/USD signal.
Since then, this forex pair has reversed down and is now threatening the 100 smooth SMA on the H1 forex chart. By the way, despite the signal hitting stop loss, the 100 simple MA, which we pointed out yesterday, did a pretty good job holding and reversing the price 3 times.
So, this is a run for safety, with most of the cash flowing into USD. We´ll analyze this sort of market and see how we can play it today.