Trading short AUD/USD – Big movements post-Powell, Nvidia earnings tomorrow [Video]

In today’s Market Outlook, let’s take a look at Forex Trading on the S&P500, the NASDAQ, AUD/USD, USD/JPY, GBP/USD, and EUR/USD.

I am always telling traders and students to follow the speeches after economic news and during major events.

After Jerome Powell spoke at Jackson Hole last week, look what happened!

So, the text of a central bank speech gets released exactly on time and is analysed in split seconds.

That is why the markets move so quickly.

Powell pretty much confirmed a US Interest Rate cut next month, so USD fell by over 100 pips on EURUSD and GBPUSD and 174 pips on USDJPY.

So, how do we trade a move like this?

Simple!  As always, WITH the trend.

Let’s take a look.

As you can see, most pairs are recovering from the big move, with EURUSD showing the biggest fall in price action.

If we look at EURUSD specifically, price action has been trending down for 2 months now.

Once price action popped through resistance, then reversed through this key level, we could confirm with our technicals and go short.

Every pair has a similar story except AUDUSD, which may still fall, as we see price action in a descending triangle.

If you want to sell AUDUSD, be careful as the AUD overall has been showing some strength.

The American Indices also liked Powell’s speech as investors flew back into the market.

However, profit-taking took place shortly afterwards and this red candle here represents more tariff talk against tech companies.

Anyway, NVIDIA earnings are coming out tomorrow, so watch the S&P500 and the NASDAQ.