AUDUSD Counter-Trend Impulsive Move - Possible Reversal | Feb 5th

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AUDUSD – Largest 1 Day Gain Since June
After a more hawkish stance from the RBA, the AUDUSD hard its largest 1 day gain in over 6 months, gaining 2% on the day on Feb. 4th in a massive counter-trend impulsive move. There was a record number of shorts and leveraged positions heading into the RBA meeting, as most were betting on a further decline. But the change in tune led to a huge jump and massive short covering. I’m guessing there is going to be a further capitulation of shorts since the pair today just trotted in place at the highs, forming a with trend pin bar.

Looking at the 1hr chart below, we can see the key intra-day …

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