Aiman Shamsul is the Head of Treasury, Human Resources Development Fund (HRDF) Malaysia. HRDF is an agency to support the continuous learning and development of the Malaysian workforce which is the key driver supporting our nation’s economic growth.
Applying Technical Analysis on Fundamental Data to Determine Market Sentiment
Throughout the history of the financial market, there is an ongoing debate on whether to use fundamental data and news or pure technical analysis to assist a trader in making his decision to buy or sell. Fundamental data often is the driver of the broad market direction in some liquid markets. Technical analysts use forms of technical analysis tools to spot market direction. Often, fundamental data is disregarded as one of the philosophies in technical analysis, and price action discounts everything. In this study, we explore to apply technical analysis on several leading and lagging fundamental data to gauge market sentiment and ultimately guide us to spot trend direction on significant indices, fixed income and forex pairs. The study will focus on selected indices such as Dow Jones, S&P 500, 10- and 30-Years US Treasury yield and EURUSD, which is the leading pair to gauge US Dollar strength.