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Intraday Correction? and a Dollar Biggie
The trading day appears to have surprised many in the market with a strong correction among the dollar pairs that has seen the commodity set taking the lead heading back up as the RBNZ sounded just hawkish enough to warrant profit taking and a pullback to the daily EMA lines while Australian data also presented some surprises with the unemployment rate at 6.3% against the steady 6.4% consensus. From then on it was a scramble to book some profits as we face some key metrics out of the US.
For a while now it has been our contention that you cannothave sustained strength in the US economy without this eventually filetering through to the consumers. Recall last week gave us another surpise in NFP which turnedout at 269K on Friday against a 240K consensus helping pull down the unemployment rate to 5.5% from the previous 5.7%. Now its time for us to know whether all those new jobs is finally having some effect. The US economic calendar has Retail Sales numbers turning out at 1230GMT with consensus expectartions calling for a recovery in demand at 0.3% for the headline number and 0.5% in the core data. Given the extent of dollar’s rout today we will be avoiding any response with as expected or disappointing numbers but double the consensus forecast and we will look at current pullback pricing as coming from a good vantage point to go greenback long once more.
Source: http://www.fxinstructor.com/blog/intraday-correction-and-a-dollar-biggie
Correct is very obvious and one can’t really avoid the role that it plays so we should always take that into consideration when trading as it can happen anytime and if we don’t prepare for it then we won’t be able to become expert or get the kind of consistency we want. I always stay up to date with the market thanks to OctaFX as they have news and analysis system which keeps me updated and it’s always spot on so I find no difficulties in trading.