How to Trade Forex in USA Session using Sentiment
Here, I’ll go over how to trade forex in the USA session but it applies to other sessions as well.
As promised I’m going to go over a little bit of the reasoning behind one of my most recent trades and how I combined both the technicals with the fundamentals. I’ll focus on the euro yen short that I made on the 29th of May 2018. This pertains to how to trade forex in the USA during normal hours but again, this can be applied to any time period. I just want to, first of all, go over the reasoning involved in using fundamental news. I personally use the Forex Source service. Start by looking under the category of market analysis. I make use of their subsection entitled “Daily European Opening News”, “FX Morning Color” and “Mid-Session Update” as well. The statements that stand out for me during the session of May 29th is that “Asian equities traded lower across the board” and “Italian political and trade concerns grip the sentiment overnight ”.
How to Trade Forex in USA session using a Pullback
This indicated that because of some upheaval with the Italian elections there was movement into the safe havens and out of the euro. This implied to me that a trade short on the euro yen would be a good idea. I made a trade of this on an hourly chart at the start of a pullback. I’d been waiting for the pullback to bounce off a twenty one moving average, patience was necessary. My target usually was the nearby swing low in conjunction with the round number. I use lot more obviously to gauge my entry points and exits but that at least gives you a basic idea.Pullbacks in general towards the twenty one moving average are quite accurate in combination again with the sentiments or fundamentals.
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