Aussie and British pound in focus as London forex markets open

In this morning’s London forex session initial focus was on the Aussie dollar following the data release overnight for employment, and which wrong footed many traders as the data appeared excellent, yet the Aussie dollar sold off strongly. This is a facet of fundamental news many forex traders fail to appreciate, simply taking the headline numbers at face value and then trading accordingly. In fact, whilst the numbers appeared to be good with employment coming in at 42.3 against a forecast of 16.1, drilling into the data revealed that most of this gain in jobs was for temporary positions, not full time. Combine this with a rise in the headline unemployment rate from 5.1% to 5.2% and the news was then viewed in the correct context.

Moving to the charts themselves and one of the great workspaces to use both time based and non time based charts with the currency strength indicator as the starting point for any analysis. And here we saw a nice move lower in the GBP/JPY on the 3minute chart following the expected volatility during the London open, with the renko chart remaining firmly red throughout. On the 30 minute chart the pair is also testing the S4 level of the Camarilla Levels indicator, and important level and one which when breached opens the way for a deeper move to the S5 and S6 levels.

Finally today sees some big option expiries, most notably on the EUR/USD with a 2.5bln and also on the AUD/USD with over 1bln.

About Anna 2016 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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