Flash crash hits the currency market
Massive forex moves
There are some incredible moves taking place in the FX market at the moment. Talk about a China slowdown his tipped markets at a particularly illiquid time and led to a wild frenzy of yen buying, particularly against the Australian dollar.
These are some of the biggest moves you will ever see. I'm sticking my neck out here but this looks like a one-off liquidity event and those tend to retrace. At the same time, these kinds of events do irreparable harm to market sentiment and will cause some brutal moves in the day ahead.
To me, this chart looks like it's the culprit, or at least part of the story, as AUD/JPY crashed down through cascading stops below the 2016 low, the 2011 low and the 2010 low to the worst levels since 2009.
Whether it was this chart or not, this kind of drop raises some serious concerns about market functioning and whether liquidity exists or not.
The moves have clearly spread beyond this pair with some insane moves in the yen-against-everything.
Source: https://www.forexlive.com/news/!/flash- ... t-20190102
Breaking: Flash Crash hits the market
1- These users thanked the author Jimmy for the post (total 2):
- Krelian99, appsoluxions
Are you looking for a Forex broker? FBS cuts spreads by up to 58%. Click here to begin your trading journey, today.
No commissions are earned by Forex-station.
Guide to the "All Averages" Filters (ADXvma, Laguerre etc.)
Use Fibonacci numbers for indicator settings + How to draw Fibonacci Extensions
An easy trick for drawing Support & Resistance
No commissions are earned by Forex-station.
Guide to the "All Averages" Filters (ADXvma, Laguerre etc.)
Use Fibonacci numbers for indicator settings + How to draw Fibonacci Extensions
An easy trick for drawing Support & Resistance