Fundamentals played absolute havoc with our technical Doms today. The pound index started off strong at the UK open but it wasn’t long before the London market movers started dumping the GBP based literally on the mixed messages in last nights PM speech about the coronavirus and the UK economy. There was also an EU court ruling that could have serious ramifications to our own courts. The usual bullying tactics.
This disrupted our Dom Long GBP/JPY and GBP/USD but not before some decent early trades. You may have thought this would play into the hands of our Dom Short GBP/AUD. No such luck. We had the proverbial strength reversal of the AUD, which started the session strong but plummeted in the early hours. This also played havoc with the Dom Short EUR/AUD, sending this long.
The German Dax started Dom long but announcements on the German federal deficit looking to triple by the end of this year had stocks heading south very quickly. This was compounded by an unexpected spike in German coronavirus infections. Fundamentally there were spanners thrown in all our instruments and whatever could go wrong did go wrong.
HOWEVER despite all this, we still had some good early trades and managed a maximum potential of 395 points from specific Max Day Trading time/price level entries from the London morning session alone, with a target of just 30.
A 10% target of this figure would have yielded a minimum of 39 net points from specific Max Day Trading time/price level entries, with many additional opportunities in the US morning (UK afternoon) and US afternoon (UK evening) sessions.
The quicker we get rid of these additional fundamentals and get back to predictive technical trading, the easier and better things will be. Until then, we’re just going to have to put up with these disruptions which could be amplified with a return of the dreaded Brexit negotiations. Does anyone have a time machine ???
