Trading news and sentiment with technical analysis

out +28 pips

A string of weak EU PMI data this morning softening Euro sentiment. Given that we have seen a broad improvement of Asia data including China, risk sentiment should be stronger and this implies EM markets. With this scenario i am short EURZAR taking advantage of the EM flows and softer Euro sentiment. So long as Euro sentiment remains weak this trade should yield a few pips. Also, on Friday Moodys didn't downgrade South Africa so there should be strong Rand sentiment this morning.The usual trade management applies which includes time and confluence levels.

out +30

EU CPI worse than expected so took another short on EURZAR after a break of a technical zone with a view to an approximate target area. A break of 16 is on the cards but i am am cautious of the area but sentiment should carry through

closed + 25 ( this area is proving to be more of a challenge)

bad US data, waiting for a break to short $ (market might be waiting for ISM however)

the 2 trades i am stalking at the moment - no entry yet waiting for a break ( market might be waiting for ISM)

UJ - dollar weakness across the board including gold. UJ is sort of a proxy for USD risk off

GU - good UK data this morning (a beat on estimates) which has driven sentiment

no trade - picture is mixed, ISM slight beat and market buying $ - they must be addicted to the greenback. It might pullback to reality in which case trade on but until then on the sidelines.

i smell a fake pig. Manufacturing must have been affected by China buying a whole lot of stuff and tariff worries (front loading). I do not believe this ISM print is relevant as a strong $ should hurt exports yet it hasn't.

Long cable (same setup)

Took 26 pips. Waiting for this $ sentiment to turn.

I won't take any event so seriously when it happens.

I just know what I am going to do if and whether the news events will trigger volatility and liquidity or not.

It is not unleashed by the reports of economic events.

It is the Market Makers' choice to move the prices or keep it as it is. I don't have any access to their order books.

It is impossible for me to know in advance what their algo robots are going to do. Will volatility go up or die? How liquid will the market be?

Like a chess game, I have to figure out how do I move when it happens.

Just a note that i won't be active today or tomorrow ( business )

morning traders

Trade on for the morning looking for USD to weaken given there is no sentiment driving it into NFP and also while the market waits for news on China\US trade talks. Norges and the Fed are currently diverging with Norges raising rates and Fed on hold with the market looking for them to lower rates. When Norges raised rates the $ was strong at the time and NOK sold off against it giving scope for the fundamentals to reassert. This is all hinging on market sentiment taking a pause on the $ and profit taking.

USD sentiment train keeps rolling but at the same time the level keeps being rejected. I am wondering how much more this sentiment train will last given the weak US data that's been trickling through with a neutral FED backdrop.

closed the trade for a small loss, will come back to this later when this $ sentiment fades - the $ short coming soon should be epic.

Round 2 here we come. Finally $ sentiment softening across the board (absolutely no fundamental reason for it to uphold its strength given the resent data prints and the FED). This must be general optimism around trade talks but reality will soon set in for the $. If this one stops out i will step aside until there is clear evidence for trading $ short.

key to its success lies in this level breaking

hanging about there too long, out +14

Hi EcoTrader, sorry if I missed your strategy, what’s your strategy by the way?? Did I miss it?? plz advise. thanks,