ISM Manufacturing Index Changed the Direction for USD, Saves Euro

Yesterday was totally an 'Euro Day' as the market continuously showing higher than expected data which proves strong economic growth in the month of May that might cause the ECB to take stronger movements next week in the rate decision. What's happened was what I called the 'left-over' sebtiments from the FOMC minute that was more hawkish than expected has caused this unduly rally in USD, ignoring the Euro data. What seems to be now is the market is more interested in the 'unsure' Fed decisions rather than the '100% sure' ECB rate hike. That's what puzzles me...

However I've taken strong positions against the USD and placing my positions on Gold and Euro. Prior to the ISM Manufacturing index, which was expected to be lower... I've closed one of the USD/ZAR which I took yesterday at 6.6992 at a loss of $2 because at the present moment Gold has taken up almost 17% of my available margin and leaving only $3 to flow around. I couldn't simply afford a margin call then I decide to close the trade, even with small loss. I feel that decision was made wisely considering the options I had. I then closed another USD/CHF trade which I took at 1.2240 with only a small profit giving me more room for Gold to move around, as I strongly sees that the low prices will generate interest in some traders. I've then position a trade at 1.2800 to ensure myself I don't miss any big movements up if a reversal happens. From the candle chart itself, even the day was fundamentally driven but from the technicals it was positioning itself in a reversal formation. These signs were seen in USD/CHF and EUR/USD 1 hour chart @ 21:00 or 1 hour before ISM Manufacturing Index were released. Based on the candle chart's reversal sign and fundamentally expectations from ISM Manufacturing is low, I've boldly closed my USD/CHF trade which proves me I was right in that decision and now I would have 1 less negative trade to manage. These ISM Manufacturing numbers were crucial yesterday as a stronger than expected number would prove that the US economy in May were still growing still growing even with high interest rates. That would boost USD to at least a new level of 1.2400 yesterday with the expectation from the Fed even more to raise interest rates of another 25bps. Fortunately, as what I and many other traders do believe is that the high interest rate has been a burden to the present US economy and slower growth in manufacturing is imminent. The numbers reported were much lower than consensus, signalling slower growth which will add another reason for the Fed NOT to raise interest rates in June. More weaker than expected data will be beneficial in Gold and Euro especially the Non-farm Payroll today @ 08:30 EST which is expecting 170'000 jobs.

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Closed Trades
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Long USD/CHF @ 1.2240 Closed @ 1.2266 ( +22 pips )

Short USD/ZAR @ 6.6992 Closed @ 6.7593 ( -601 pips )

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Existing Trades
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Long EUR/USD @ 1.2800

Long EUR/USD @ 1.2860

Long EUR/USD @ 1.2910

Long EUR/USD @ 1.2960

Long USD/CHF @ 1.2280

Long USD/CHF @ 1.2380

Short USD/ZAR @ 6.0500

Short USD/ZAR @ 6.7000

Long XAU/USD @ 648.80

In political views, the talks in Iran about the Nukes are making the Oil trading at $71 which indirectly affects the price of gold. Plus the hurricane season in the US has started, therefore I will see price of gold resuming it's uptrend rally soon. I'm losing $0.05 cents everyday due to the interest rates from Gold and Euro, I will take more trades in ZAR if I'm seeing it increasingly more necessary to do so in a few days time.