It was such a messy unemployment day. I was sleep deprived for London and knew I didn’t want to trade during data release so I slept in until the chaos settled. After oversleeping, I woke up to a crazy market and missed the entire drop on the EUR/USD. I tried my best to long scalp the dollar but price didn’t really go up for EUR/USD. GBP/USD had a better short opportunity but I was too focused on EUR/USD. Unlucky day. I except the dollar to bounce a bit more but so far EUR/USD is recovering it’s drop.
The dollar is still carrying it’s weight especially with the USD/JPY creeping it’s way up. The dollar bull’s attempts are still pretty weak but it’s showing some signs of growing strength. There’s some heavy BoE news for early tomorrow that’ll definitely have an affect in GBP/USD. Lets hope the markets keep it juicy.
The ISM Manufacturing PMI came out almost as expected of 56.3 vs 56.4. With the help of the news, the dollar bulls gained some what of a breather from the huge downtrend we’ve been having. Many traders are looking to find the top of EUR/USD but the top still seems pretty foggy. We’ll need more days of dollar strength to have a comfortable top.
The dollar bears go for another leg down and the dollar pairs continues to make new record highs/lows. It’s looking tough for the dollar to find a support but it’ll be sooner or later. For now I’m scalping small moves within small time frames and waiting for a bigger macro moves within the market.
Right when we thought we would see the week finishing off with a strong dollar, the dollar bears continues to rage. I was at an awkward position because I secretly wanted to long the dollar due to not seeing the right R:R for dollar shorts. The market was essentially slow today and mainly had opportunities for short scalps. With that said, I think the dollar sell-off is not done and will see more selling through next week.
After such a heavy dollar sell off yesterday, the market had a tease with the market. By the end of today’s sell off, there were some strong dollar longs especially with USD/CAD and USD/CHF, which I mainly traded. Lets see if this trend holds for multiple days and continues on for next week. I’m suspicious but hopeful. Be cautious because it’s times like today where traders get trapped thinking there’s a full on reversal. I personally like to wait 3 days of continual strength for a confirmed reversal.
Dollar had a sharp sell-off today after the FOMC statement with EUR/USD hitting a new 2 year high. The Feds left the rates unchanged, said inflation was still lower than 2% and said the next hike will be “relatively soon”. The key word, relatively, providing mystery and not much detailed promises. The strength of the dollar bears have been incredible for the last couple months and looks like it’s still going. For my trading, I personally kept it minimal since the market was slow and for a possibility that it can get chaotic post-statement. Now that dollar picked it’s trend, I’ll see if I can short scalp the dollar on it’s way down.