I have been following this thread for a while and while I am no expert (about a year in Forex, most of which was disastrous), I feel that in the last four months I have started to understand it a bit better. I don't want to get in to a discussion about who trades better than whom or whatever, to me if anyone makes consistent money out of forex no matter how they do it, then good luck to them. I am currently trading one real account and one demo, the real is small, just trying to get as much practice as possible before trying anything large - I am not selling any system, EA or anything.
It's an interesting point about price reaction to news as I have seen the same thing happen in many pairs (GBPUSD just yesterday for example did the same) and would like to offer my thoughts (all or some of which may be wrong) for people to comment on - just for all our own learning, not ego.
1. Trading around news is very risky as any reaction might be short and violent in both directions and with some brokers the spread gets worse and/or maybe trade context gets busy and you can't open/close.
2. Large money players need the volatility and liquidity to get their orders filled and if they can push the price one way or another then money will come into the market, so that they can get better prices for what they want to do. i.e Buyers need Sellers etc.
3. Unless the news fundamentally changes the expectation for interest rates (return) for the currency, then it will likely return to the broader trend. E.G The AUDUSD pushed up (after that news) to .825 ish and then fell down and is currently .811. GBPUSD after yesterday went up to 1.518 or something....you would expect it to resume going down unless something fundamentally changes. For the USD remember the expectation is that interest rates there will go up in April whereas AUD for example unlikely to go up this year apparently. Of course, it's not always as simple as that as for example the fall in Oil seems to affect AUD, CAD, NZD etc. differently and JPY often gets talked about as a risk averse currency or the place where money goes when USD etc is considered vulnerable.
4. So if you are still bearish/bullish on the currency, treat it as a chance to go short/long at a better price and vice-versa.
5. Consider where the price is in relation to support / resistance levels....the AUD was about .803 and while the news wasn't good - that support held.
Anyway just my thoughts...be interested to see what people think....