Yesterday’s Market Wrap

The US dollar has been retreating for around three weeks, after being on a strong bullish trend in the previous two months. Risk assets such as stock markets, commodities, and risk currencies turned bullish and made decent gains, but it seems like the retreat in the USD might be over. EUR/USD failed to push above 1.08, while stocks and commodities have been bearish for two days.

The USD made a comeback yesterday, especially after the US ISM manufacturing report which showed an improvement and a slight cool-off in prices paid, which might mean that consumer inflation will start cooling off as well next month. This supported the USD which made some decent gains yesterday, while almost everything ended up lower apart from Gold and Silver.

The Data Agenda Today

Today several countries are off for national holidays, which should leave markets slower and liquidity lower. Earlier today the Spanish employment change figures were released, but the most important economic release today will be the US ADP non-farm employment change and the unemployment rate after that. Although, we might see some strange flows in the US session in forex and commodities and traders close some of their position before the weekend.

Forex Signals Update

Yesterday we had a great day regarding our trading signals strategy which gave us six winning signals in a row. We opened many signals yesterday across all markets, as the volatility provided us with some good trading opportunities.

USD/JPY – Buy Signal

USD/JPY has been on a bullish trend for two years but in March the uptrend picked incredible pace as the conflict in Ukraine escalated and this pair pushed above 131. We opened many buy signals during March and April but last month we saw a pullback. Although the pullback is over now and we are bullish again on this pair after the price has moved above moving averages. We opened a buys signal yesterday and booked profit eventually as the price climbed above 130.

USD/JPY – 240-minute chart

GOLD – Sell Signal

Gold has been bullish since the reversal higher by the middle of last month, although it failed to push above the 20 SMA (gray) on the daily chart. That moving average has been providing resistance for several days and after the previous two candlesticks, we decided to turn bearish yesterday, opening two sell Gold signals, both of which closed in profit.    

XAU/USD – Daily chart

Cryptocurrency Update

Buyers had an attempt on cryptocurrencies on Monday, after they consolidated for more than two weeks, following the crash early in May. But, the bullish attempt seems to have failed and we are trying to open some sell signals as they start to reverse lower.

ETHEREUM Failing at the 20 SMA

Ethereum slipped to $1,700 lows early last month, but it retreated back up pretty quickly which showed buying pressure down there. ETH consolidated in a range for most of the month. In the last few days, we have seen a decent bullish move, but it stopped at the 20 SMA (gray). Yesterday we saw a bearish reversal in cryptocurrencies as the risk sentiment turned negative.

ETH/USD – Daily chart

Booking Profit on Ripple After Selling at the 20 Daily SMA

XRP/USD crashed to $0.38 earlier this month during the fall in crypto market, but has been consolidating since then. Although, highs have been getting lower and after yesterday’s gain stalled at the 50 SMA (yellow) on the H4 chart and we decided to open a sell signal below that moving average, as the stochastic indicator became overbought, suggesting a bearish reversal soon.

Buyers gave up at the 20 SMA again