Following an extended period of sideways consolidation across virtually all the pairs today, currency markets are finally starting to move again this evening, as we await a speech from Fed Chairman Ben Bernanke. As a result of this market activity we were finally able to take on two trades this evening, with the first being a short on the Aussie dollar pair and the second a long on the USD/CAD, which netted a total of 49 pips during the session.
A quick look at the fatman indicator was enough to guide us into these trades, with the US dollar ( the cyan line ) climbing fast from an over sold position, and the Canadian dollar falling sharply and moving back towards an over sold area. The move lower by the Canadian dollar was mirrored by the Australian dollar which gave us our second trade of the evening with our fatman indicator set to 45 minutes.
Looking to the overnight session in Asia, we can expect to see a possible reversal in both the New Zealand dollar and the Australian dollar against both the Japanese yen and the US dollar, as all four currencies begin to test the extremes of over bought and over sold areas on the hawkeye fx indicators, whilst the euro and the Swiss franc, remain waterlogged, along with the British pound in this timeframe.