Trading high impact news: When nothing changes (RBA rate), hold fast!
This particular RBA cash rate and rate statement offers a learning opportunity to traders searching for setups to trade high impact news.
High impact news: RBA cash rate & RBA rate statement
Tuesday 03 December 2013:
- RBA cash rate announced at Singapore time 11.30 am
- RBA rate statement at same time
- Previous 2.50%
- Forecast 2.50%
- Actual 2.50%
Technical picture for AUDUSD
The AUDUSD currency pair had fallen steeply for the month of November, stopping at a big picture Fibonacci Retracement level of 76.4%. 76.4% is considered a deep retracement level that attracts traders and investors looking for potential turning points. In fact this level in the region of .9050 – .9060 has a confluence with the low (support) set in July.
On the hourly chart, the pair quickly turns South to test support following announcement. Failing to break support, we can see that 6-hours later, price is more than 50 pips above the level.
Since Previous = Forecast = Actual and there is a support level that would not budge, this may be a good high impact news trade setup for traders to take note in future.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.
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