Yesterday’s Market Wrap

After risk sentiment remained negative for most of last week, which sent commodities into a tumble lower. Although on Friday the risk sentiment improved and risk assets started to reverse higher. Cryptocurrencies continued the reversal over the weekend but today they retreated lower, although they stopped sliding down during the US session.

The economic meltdown in China continues, with retail sales and industrial production falling last month, while unemployment keeps increasing. Economic projections from the EU saw a revision lower for the 2023 Eurozone GDP which kept the Euro on a slight bullish trend. The Empire State manufacturing index showed a deep dive last  month, which kept the pressure on the USD.

The Data Agenda Today

Today starts with the minutes report from the last meeting of the Reserve Bank of Australia when they hiked interest rates, so it might have some impact, especially if they decide on no more hikes in the near term. Earnings and the unemployment rate are expected to remain stable in the UK for April, while later in the European session employment and the GDP are expected to remain unchanged.

Later we will have the retail sales and industrial production for April, which will be interesting to see after the recent dip in the global economy. FED chair Powell will hold a press conference in New York bout inflation, which might have some positive impact on the USD, if he predicts that inflation will remain high.

Forex Signal Update

Yesterday there was some nice action in the markets, so we tried to take advantage of it, opening eight trading signals, spread in commodities, forex, and cryptocurrencies again. We had some good returns with cryptocurrencies after selling Ripple, but got caught on the reversal in forex as the sentiment improved in the second half of the day.

 NZD/USD – Sell Signal

The trend remains bearish for this pair and we continue to sell retrace on NZD/USD. Yesterday we had the first losing signal here after many winning ones, as the retrace stretched higher. Although we left a pending order right at the 50 SMA (yellow) on the daily chart, which has been triggered overnight.

NZD/USD – H4 chart

 SILVER XAG – Sell Signal

Silver and Gold were quite bearish since the middle of March, enduring some considerable losses. We have been short on the precious metals, with most signals closing in profit. The last week’s sell signal in XAG/USD closed in profit as the ecline continued and we decided to sell the retrace yesterday, but the retreat in the USD continued and Silver pushed higher, hitting our SL target.

Silver – 240 min chart

Cryptocurrency Update

Cryptocurrencies turned bullish over the weekend as risk sentiment improved, after being really bearish in recent weeks as Terra LUNA and its stablecoin UST crashed. We have opened to crypto signals, one of which closed in profit yesterday.

 Selling RIPPLE at the 50 SMA

Ripple token has been more bearish than most other cryptocurrencies and recently the bearish pressure has picked up pace. As a result, XRP/USD crashed down to $0.34 last week, but retrace higher, although it couldn’t climb above $0.74, where my colleague Arslan decided to open a short term sell signal, which closed in profit as that moving average rejected the price.

XRP/USD – H4 chart

 BITCOIN Deciding Around $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