Last Week’s Market Wrap

Last week the risk sentiment was totally negative, sending most risk assets into a deep dive, while the USD made considerable gains, even the JPY which has been very weak in recent months benefited from the safe-haven status. Risk currencies and commodities resumed the downtrend, while crude oil bounced off the $100 zone, ending the week around $110.

Cryptocurrencies had a terrible week as the decline picked up pace after Terra LUNA fell toward $0. Although we have seen a reversal attempt from buyers over the weekend and it looks like it’s continuing today as well, as Bitcoin (BTC) increased above $30,000 again after having dived to $25,000, while Ethereum (ETH) has increased above $2,000. Consumer inflation CPI jumped in China as well to 2.1% although it remains at normal levels, while US CPI (consumer price index) inflation figures came above expectations, showing an 8.3% increase on an annual basis, which helped the USD further.

The Data Agenda Today

Today the PPI (producer price index) inflation from Japan showed that it remained quite high in April above 9%, meaning that it should send the consumer inflation higher in the coming months. The economic meltdown in China continues, as unemployment keeps increasing while sales keep declining, with many ships still blocked in Chinese ports. The EU economic forecasts for the Eurozone and the hearings report from the last FED meeting will give us an idea of what they have planned for the next few meetings.

Forex Signal Update

Last Friday we opened six trading signals, spread in commodities, forex, and cryptocurrencies. We had some good returns with the commodity signals and are up more than 1,000 pips in Bitcoin, but got caught on the reversal in forex as the sentiment improved in the second half of the day, as well as during the week.

 SILVER XAG – Sell Signal

Silver and Gold continue to tumble lower, despite the risk sentiment being negative in financial markets, which was sending risk assets such as stock markets and cryptocurrencies lower. SIlver should have been bullish as a safe haven, but remains bearish and last week we decided to sell XAG/USD after the retrace higher faded at the 20 SMA (gray), which closed in profit. We are planning to open another sell signals at moving averages as the price retraces higher again.

Silver – 240 min chart

 EUR/GBP – Sell Signal

The trend has reversed for this pair after buyers pushed the price above the 200 daily SMA (purple) which was keeping it down. We have been bullish on this pair in recent weeks, opening several buy signals which have closed in profit, although the last one hit stop loss as the risk improved on Friday and the GBP gained more than the Euro, which sent this pair lower.

EUR/GBP – Daily chart

Cryptocurrency Update

Cryptocurrencies turned really bearish last week, resuming the selling pressure again as panic struck the crypto market as Terra LUNA crashed down below $0.01, leading the decline. Its stablecoin UST fell below $0.315 but over the weekend the sentiment improved and we are seeing a reversal in this market.

 BITCOIN Increasing Above $30,000 

BTC/USD has lost a lot of value since it made a new record high last November at $69,000, after the decline resumed again after several months of consolidation. Last week we saw the price fall to $26,500, but the price formed a doji on Friday, which is a bullish reversing signal and we decided to open a buys signal, which is in profit now as the price has been moving higher over the weekend.

The support held for Bitcoin again

 ETHEREUM Moves Above $2,000

Ethereum is also attempting a bullish reversal after it reversed just above the support at $1,700. This cryptocurrency has been bearish since November and it crashed below $1,800 last week, but the support zone has held and now the price has moved above $2,100. This might be a good chance to buy Ethereum but we will follow the price action and the market sentiment for some time.

ETH/USD – Daily chart