Forex Signals Brief for May 26: US Q1 GDP to Be Revised A Tick Higher
Skerdian Meta • 3 min read
Yesterday’s Market Wrap
Recently we have seen a reversal in the USD after being on a strong bullish trend for a couple of months. Most major currencies benefited from this and they have been making some decent gains for the last week or so, but yesterday the USD buyers returned and it seems like the uptrend might resume again as it pushed higher against all currencies.
US stock markets made some modest gains, although commodities had a second bearish day, which shows that the sentiment in financial markets is not certain right now. The Reserve Bank of New Zealand raised interest rates for the fifth time in a row yesterday in the Asian session.
The Data Agenda Today
Today, most of Europe is on holiday for Ascension Day, so it will be a bank holiday weekend therefore the liquidity is expected to be lower today and tomorrow. This might mean slow markets, or large sudden spikes, so we have to be careful.
In the US session we have the second (prelim) reading for the Q1 GDP which showed a 1.4% contraction and today it is expected to be revised higher to -1.3%. Canadian retail sales are expected to show a jump for March, but that’s the month prices hiked, so perhaps the weakness will be more visible in April’s reports.
Forex Signals Update
We have had a streak of winning signals for several days, despite the reversal in the USD, with trades in different markets. Yesterday we opened four forex signals, two of which hit stop loss, as markets remained irrational. Although, we are getting back to it today and will make of for those losses.
EUR/GBP – Buy Signal
EUR/GBP turned higher last week, as the Euro started increasing more than the GBP, but eventually, the buying pressure ended and this pair was slowly retreating lower. We decided to open a sell signal after the price formed a doji candlestick on the H1 chart at the 50 SMA (yellow), which acted as support for a while. We saw a bounce off that moving average and the price approached our TP target, but then this pair reversed lower suddenly, although the 200 SMA (purple) held as support.
EUR/GBP – 60 minute chart
USD/JPY – Sell Signal
USD/JPY has been bullish for two years but in the last two months, it picked an incredible pace as it pushed above 131. Although, earlier this month this pair started retreating lower as the USD started to weaken and moving averages turned into resistance. We decided to open a sell signal at the 20 SMA after forming a doji candlestick, but buyers pushed above that moving average eventually.
Gold XAU- H4 chart
Cryptocurrencies have been bearish in the previous weeks, but in the last two weeks the crypto market has consolidated, trading sideways. BITCOIN traded around the $30,000 level during most of the week while Ethereum consolidated around $2,000. Neither sellers nor buyers have the courage to take the situation in hand, so we are just watching for now.
Will last Summer’s Low Hold for FTM/USD?
Fantom crypto was showing strong bullish pressure until the middle of January, when it retested the previous highs below $3.50. But eventually, the negative sentiment in the crypto market and the Wonderland controversy pulled this cryptocurrency down. Then, two of the most prominent personnel left the fantom team, such as Andre Cronje who is a prolific developer and Anton Nell, a senior solutions architect weighed on FTM/USD further sending it below $1 at first and then to $0.25. Although Cronje might return to Fantom after some rummours we heard, which would be great news for FTM. The 20 daily SMA (gray) rejected the price on Monday, but we are seeing if the support from last summer at around $0.15 will hold.
FTM/USD – Daily chart
Buy Thorchain RUNE Around Here?
Thorchain token RUNE has been making lower highs since May last year when it peaked above $20, while the second high in November last year came to $17.60. The third high came after the recent upgrades from Thorchain, which sent RUNE/USD above $13.
We missed that great opportunity, particularly after the retreat below $3, although now the price has moved back above that support level. So, we are thinking about buying this cryptocurrency.