Powell Testifies And The Markets Listen!

Trading is hard at the best of times, and made doubly so when someone as influential as Fed Chairman Powell is speaking which was the case this afternoon as he testified before the House Budget Committee. As a result US markets reacted with caution and generally moved sideways for much of the session, with the VIX flip flopping between 13 and 13.80. This was a day for scalping in the very fast timeframes, or for more conservative index traders, one to sit out and wait for the price action to develop later in the day once he had completed his testimony. Indeed over the last ten days, this has been the pattern for US equity markets which have traded in narrow ranges. But as we show in the trading room, there are opportunities to be taken, but this does mean moving to the fast timeframes, which is not for everyone.

And following on from the London forex session we catch up with the GBP/AUD which delivers once again with a strong move higher as the Aussie Dollar continues to weaken, and remains the strongest currency pair on the currency heatmap on Tradestation. A classic trend higher and moving firmly away from the volume point of control.