The Market Doesn’t Care if You’re Right or Wrong:
A ‘risk-on’ tone swept through markets yesterday, with both equities and commodities both higher. This followed better than expected US manufacturing data and continued to alleviate fears that the Fed will not be thrown off course.
The biggest shock though, and something worth looking at from a trading point of view, was the Aussie Dollar’s strength in the face of quite simply HORRIBLE manufacturing numbers out of China!
The RBA leaving rates on hold for another month obviously had an effect on the currency, but the Chinese number was the lowest reading since 2011!
There is some serious strength in the Aussie right now which should add to your conviction when playing from the long side. The levels are there on your charts, now trade them.
Chart of the Day:
Yesterday before publishing the morning blog, we had a little motivational sharing spree on Twitter:
“The analyst who talks about his mistakes is the guy you want to listen to. Avoid the guy who doesn’t — his are much bigger.”
Long USD/CHF was a sure thing!
So… How’s that washing cars thing going?
With price having now broken the major bullish trend line, yesterday saw price re-test the underside of the level (TO THE PIP), this time as possible resistance.
The market doesn’t care if you’re right or wrong. Be humble.
On the Calendar Wednesday:
AUD GDP q/q
GBP Construction PMI
USD ADP Non-Farm Employment Change
USD Crude Oil Inventories
Dane Williams – @VantageFX
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