Feb7 – Market Analysis

Trading update: Took two trades in the evening – both revolving around demand/supply zones – a ‘continuation’ long on EURJPY (stopped out for a 0.4R loss) and a ‘reversal’ short on NZDUSD – which hit the full target within 2-3 hours, although on smaller position size.  Thus, a net result of -0.08 R for the day.

Market Analysis

Despite a hawkish tone from the ECB, EUR did not increase its ranking points yesterday, however CHF saw some strength – I guess a hawkish tone from the ECB implied a preference for “risk off” and away from “risk on”.  But why did the ECB tone cause a significant weakness in the Yen?

Sterling and USD both lost 1 point.  So to recap we have Sterling on 12, CHF now on 11 (and strengthening), EUR and USD on 8 (stable), Yen on 8 (strengthening), NZD on 6 (stable-weakening) and AUD and CAD on 1 and 2 respectively.

This afternoon is NFP so I am very unlikely to put on any trades prior to then, but will consider putting on some afterwards.

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