Forex Signals Brief for May 27: US Q1 GDP Revised Lower, Oil Remains Bullish

Yesterday’s Market Wrap

Yesterday European markets were closed for a bank holiday weekend, while in the US session we had the US prelim GDP report for Q1 being released. It was expected to show a slight uptick from -1.4% to -1.3%, but it was revised lower instead to -1.5%. Considering that Q2 will be another difficult quarter with a possibility of another contraction, that would mean official recession in the US.

Despite that, Crude Oil continued to remain bullish, after OPEC+ decided to keep production unchanged. They are enjoying higher prices, especially Russia, which is what this price hike was all about. So, the west is paying for this. US WTI jumped more than $3, heading toward $115, showing that the sentiment in Oil remains bullish after all the headwinds, even with the Chinese lockdowns.

The Data Agenda Today

The recent retreat in the USD seems to have halted and the market is not sure what to do now, since rate hikes are not working to lower inflation. Although, the direction the market closes in for the weekend will show which side the market is leaning on.

Today in the Asian session we have the Tokyo core CPI inflation which is expected to tick up to 2.0%, while Australian retail sales are expected to remain positive for March, although in April and May reports the pain will come. In the US, we have the PCE core price index while later the US personal income is expected to remain the same, while personal spending is expected to cool off in April.

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.

S&P500 – 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.

S&p500 – Daily 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- Daily chart

Cryptocurrency Update

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 rumors 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.

The area around $3 is a great place to buy Thorchain RUNE

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.

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