Sentiment is key
Sentiment is simply the 'mood of the market'.
Identifying sentiment is confusing at first especially as you might struggle to correctly prioritise the importance of incoming data. However, there is only so many data points for each currency and, through time and practise, you will improve your ability to identify sentiment. So, keep practicing and learning through the times you misread the sentiment.
Some key market sentiments to get under wraps is a risk off or a risk on sentiment. Here is a helpful resource below to recognise 'risk-on' and 'risk off' trading courtesy of Financial Source.
Today the prevailing sentiment is that hopes of a US stimulus deal are keeping risk assets supported. European PMI's are coming up, so that has the potential to shift sentiment too.
