Can you imagine if a single Central Bank decided to buy or sell a single currency in “vast quantity” in a single hour of a single day….what that would do to the price?
Now consider if 5 Central Banks at once “all jumped on board” in a single hour to buy or sell a specific currency. Wow. talk about a huge spike no?
Currency markets don’t work that way as…..it takes weeks if not months for a single Central Bank to move “into a position” or “out of a position” without completely turning the market on its head by the sheer volume / impact of a trade of such size.
Take a look at AUD/USD:
While small time retail investors figure “they’ve got things licked” buying AUD up from 88 area back in Feb, we can only assume that the big boys have been quietly selling / building short positions as we now near the wonderful “red line” – the 200 Day Simple Moving Average.
If the past is any indication of the future in “this specific example” ( as I’m not so much about the past ) I encourage you to keep your eyes peeled over the next few days.
Could it be that you are learning to trade like the big boys?
Oh….I thought not.