AUDUSD Pre PBoC Decision

This area circled on the five minute chart for AUDUSD caught my attention today. See the small area of small wicki candles. I remember seeing them and thinking ‘thats gonna shoot up!’ Before I could place the trade it did, on the (unscheduled) announcement by the People’s Bank of China.

audusd5
AUDUSD 5 Minute

 

Whenever I see that I always expect a decent move. I guess a small pocket of demand with buyers and sellers coming together briefly, then the game of ‘musical chairs’ ends and the Boom!

But one trade that got away. Risk would have been minimal with a tight stop a pip or two below the dark blue area. Not bad for a quick 50 odd pips.

There is a risk it could shoot either way of course. Hence a tight stop.