AUD/USD picks up bids to refresh the daily high around 0.7065, up 0.25% intraday, following the Reserve Bank of Australia’s (RBA) monetary policy meeting decision on early Tuesday. The RBA proves right the market expectations while keeping the benchmark rate unchanged at 0.1% and the weekly bond purchases of $4.0 billion intact until at least mid-February 2022. However, the Australian central bank’s comments line, “The omicron strain is a new source of uncertainty, but it is not expected to derail the recovery,” seems to have underpinned the AUD/USD pair’s latest run-up. Earlier in the day, China released ... (full story)
Joined Mar 2008
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Status: PVSRA with Traderathome
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"The RBA proves right the market expectations......"
REALLY? Well, take a look at this Week chart. It clearly shows the volume for the week, only starting it's 2nd day, and for this price move up, DOES NOT SUPPORT THIS STATEMENT! The MMs "worked" the price up. With such low activity there sure wasn't a "expecting market" backing this move up!
So, considering this totally misleading statement in the "news", one might wonder if the MMs "worked" the price up (which is nothing more than a retrace in a fresh bear trend) to get it back up where SM has given the MMs sell orders to fill? One might even be reasonably wondering if those behind this "news" were hoping that bulls would more abound and provide better liquidity for MMs to fill SM sell orders (HTMRW).
We cannot ever know how the MMs will move price next, but this move up looks on the chart like nothing unusual, just a normal "healthy retrace" to allow SM to build their "sell" positions (hint: "Buy low, sell high." But, we don't know what might come next. What we do know is that our charts will serve us better than the "news". We just have to be patient and await decent entries for decent trades, not jump into any bias that might be cleverly caged within "news"........