Forex Signals US Session Brief, OCT 24 – Risk Is on as Cryptos Jump, while Safe Havens Dive - Forex News by FX Leaders

Forex Signals US Session Brief, OCT 24 – Risk Is on as Cryptos Jump, while Safe Havens Dive

Posted Tuesday, October 24, 2017 by
Skerdian Meta • 3 min read

Today it seems like the financial markets are feeling more adventurous than yesterday. Safe haven assets such as the JPY, CF, and Gold are tumbling. In the other hand, cryptocurrencies are surging right when we need it most with the buy forex signal we have in Litecoin.

The piggy bank doesn't look so safe today.

Safe Havens Are on the Slide

Safe haven assets are the opposite of the risk assets, so when the market feels confident in taking some risk, the safe haven assets suffer. That’s been the case so far today. Gold surged higher late in the day yesterday, but after failing to break the 100 SMA on the H4 chart, the shiny metal started to reverse back lower.

We opened a sell forex signal in Gold a while ago, which looks good at the moment. Actually, right now Gold sellers are pushing lower, so we are well in profit with this signal. Although, there‘s still some distance to cover until we reach the TP level.

The Yen and the Swiss Franc are also under pressure today. USD/JPY is nearly 70 pips higher from yesterday’s lows while EUR/CHF is back above 1.16. That said, this forex pair faces tough resistance around the 1.1620 level.

That's been the high in the last three years, since 2015 when the Swiss National Bank (SNB) crashed the market. If the buyers take out that level, then the road is open for 1.20. I think there will be enough sellers to give this pair a push lower before the next move up. So, we might take a trade which we will highlight in the sections below.

Finally Some Sparks of Life in Cryptocurrencies

Cryptocurrencies have been declining nonstop since the beginning of last week. That got me worried since we have a buy signal in Litecoin, and I bet most of the cryptocurrency traders were worried as well because most of the crypto market is long on these new currencies, hence the long-term uptrend.

Last night though, digital currencies jumped higher apart from Bitcoin. Although, I don’t think anyone is too worried about Bitcoin because it has climbed so much recently, unless you are a latecomer to this rally. That’s the reason I always say that we should wait for retraces/pullbacks before entering a trend.

Litecoin, Ripple coin, Dash, and Ethereum are all rallying. Our Litecoin signal is still in red, but the bigger picture looks bright. The daily Litecoin chart looks bullish to me. The trend is clearly up, so this latest decline is merely a retrace of this trend.

We reached the 100 SMA (green) yesterday which has been providing support in the last few months. Looks like this moving average is providing support again, and the price is already about 50 pips higher from yesterday’s lows. So, we’re on the right track here.

The 100 SMA has come to our rescue.

Trades in Sight

Bearish Safe Havens

  1. The big trend is bearish
  2. The trend has picked up pace today
  3. The sentiment is totally against safe havens today

The 50 SMA looks like a really good place to join Bitcoin bulls.

So, safe haven assets include the Yen, the Swissy, and Gold. They all are under pressure today, so the safest trade would be too short them – meaning buying of EUR/CHF and USD/JPY. Right now the buyers have pushed too far, so it’s best to wait for a retrace at the 50 SMAs for both of the pairs before going long.

In Conclusion

Cryptocurrencies have been having trouble today amid some USD strength, while USD/JPY and Nikkei have been surging. We are thinking of trading these instruments today, but it’s better to wait for a retrace before jumping in.

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About the author

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.
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