10/31/2011 RBA Rate Statement / Cash Rate (1730 HI time / 2330 EDT)
SPIKE / RETRACE
Started @ 1.0365
1st Peak @ 1.0315 – 1731 (1 min)
Reverse to 1.0351 – 1733 (2 min)
Notes: At its meeting today, the RBA decided to lower the cash rate by 25 basis points to 4.5 per cent, effective 2 November 2011, matching predictions. This caused a healthy down spike, followed by an immediate reversal. If using JOBB, you would have filled short. Keep an eye on the Range. It fell 40 ticks and retraced giving it all back in the first 2 sec before ratcheting down 50 ticks. Unless you have slippage issues and are filled late, the 15 tick stop loss should not fill on the retrace. I would play out the ratchet effect as it continued until the end of the candle. With the long tail and the 1732 candle starting green, I would close out at about 1.0327 on the 1732 candle.