Forex Signals Brief for September 6: ISM Services to Nail Another 75 BPS FED Hike

The RBA raised interest rates by 0.50% last night, but the main event will be the ISM services which will affect the FED policy

Skerdian Meta•Tuesday, September 6, 2022•3 min read

Yesterday’s Market Wrap

Yesterday was Labour Day in the US so the volatility decreased after some major moves last week. The final reading for the European services showed a slight deterioration, putting this sector in contraction. European natural gas surged nearly 30% at one point but the market is skittish as the EU floats various trading bans and plans ahead of a meeting of finance ministers on Friday.

EUR/USD opened with a bearish gap and continued lower to finally push below 1.09 with the Nord Stream cutoff, it rebounded higher although closed the day below 1. In Britain, Truss won the vote to be Prime Minister as expected which also helped the GBP but she will face some tough choices from the start.

The Data Agenda Today

Today it started with the interest rate hike from the Reserve Bank of Australia, which raised their rates again by 0.50% or 50 bps (basis points), taking them to 2.35%. Although, after a small wobble the AUD is not taking much advantage as the RBA is expected to pause hikes for now. Later on, we have the ISM services report which will show if this sector can support another 75 bps hike from the FED.

Forex Signals Update

Yesterday we opened three trading signals, all in forex, but only one closed. The USD/JPY signal closed in profit as the bullish momentum continued for this pair. Most forex pairs traded in a tight range with the US markets being closed, so there was not much to trade, although we did start on the right foot and hope to have another positive week.

MAs Continue to Provide Resistance for WTI Oil

Crude Oil continues to be on a bearish trend, as the highs keep getting lower, as do the lows. Moving averages are doing a good job acting as resistance at the top during retraces higher, and yesterday we saw another rejection at the 100 SMA (green), so we are preparing to go short on Oil, although we will wait for the OPEC meeting.

US Crude Oil – 240 minute chart

Booking Profit on Another USD/JPY Long

USD/JPY continues to trade above 140 as the JPY remains weak, which kept this pair bullish last week, pushing it above that major level for the first time since 1998 during the height of the DotCom crisis. Moving averages have been doing a great job in providing support and we have been buying pullbacks at MAs on the H1 chart. Yesterday we booked profit on our latest USD/JPY signal.

USD/JPY – 60 minute chart

Cryptocurrency Update

Cryptocurrencies continued to trade sideways yesterday after being in a tight range last week. The market turned bearish in the second half of August after being bullish for two months. sending BTC below $20,000, but we didn’t see a continuation lower and Bitcoin continues to hover around the $20,000 level.

Ethereum Grinding Higher

Ethereum went through another decline last month, after doubling in value during the bullish period from June until the middle of August. MAs were acting as support in the H4 chart but the bearish momentum in the crypto market sent ETH/USD below them again. They turned into resistance for some time, although buyers are pushing the price higher and yesterday ETH moved above the 100 SMA (green) which is another positive sign.

ETH/USD – Daily chart

LITECOIN Buyers Back in Charge

Litecoin was showing weakness since last November after the failed surge, and moving averages have been keeping it down, pushing the price to $42. Since June though, we have seen some buying pressure and now buyers have pushed the price above the 50 SMA (yellow) and the 100 SMA (green) which is a bullish signal.

LTC/USD – Daily chart

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ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.