Hey guys,
Question about the price movement today in AUDNZD. Basically when the new day started today broker time price was at 1.01668 then on the new day the candle starts at 1.01301 and immediately jumps to 1.01669. If i look on the minute chart it is a big bull candle. How can this price movement happen? Is it ligament or is this some kind of broker manipulation maybe? Anyone know about this? I am using an ECN.
Thanks
That is the nature of Forex - sharp spikes that harvest SL’s and drives account to SO. Try to avoid those moments of trading where gaps or sharp spikes may occur. This is quite common for sharp changes in liquidity - when new trading week starts, trading sessions change, etc.
It’s better to leave your broker if it happens too often.
Also, make sure it is not a “bad tick” from the broker. They call it a manifesto error.
So many new forex traders are worried about broker manipulation because they see something on the 1 minute chart at the ‘open’. Educate yourself more before even trading so you understand the markets better. Is there a chance that your broker is hunting SL’s? Sure, it is possible but why open an account with a broker where you don’r feel comfortable. Let me put it another way: While there are bad brokers out there, most of the BS you read how brokers screw their traders is not accurate, at least not in my experience. This may very well be because I have selected my brokers carefully.
Yes, I agree with TheLastBear: while there may be slippage, and inconsistencies may occur, spending too much energy on calling foul play is pointless (unless you have clear evidence of misselling of an order or manipulation)…
In the end, most brokers have enough access to liquidity to fill orders from small fish like most of us retail traders, so I would not worry about this. Call or e.mail your broker and try to build a good rapport with them: if they value their clients, they will answer your query as best as they can, I am sure.
Another topic, while we are at it: Aud/Nzd is at historic lows and it failed to ‘bounce’ convincingly off them for the entirety of 2014; this year, it started again without much conviction, and although the NZD is bearish, so is the Aussie, which makes the recent bounce from the Aussie (spurred by the RBA’s rate hold) not particularly convincing for a lasting trend to the upside.
Which way will the Aud/Nzd go, in your opinion?
It depends on how the next fundamentals from China come out, but it seems like the AUD is the one taking the greatest hit, even though both, the AUD and the NZD are being hurt by slowing economy in China.
You are right! Also on the monthly chart can we see this indecision, with the formation of a doji this month, and a plummeting ATR:
With the pair at a price lower than the last historic lows (2004 and 2006, at 1.05), there are no levels to compare it with, so even with a doji in the making I would also wait for confirmation before calling a bottom and a reversal…
Next big-ticket items: Chinese GDP tonight (4am, GMT), which is forecast to be lower, and the RBNZ rate decision on 30th April…
Good luck and happy trading!
