Yesterday’s Market Wrap

After the sudden deterioration of market sentiment on Wednesday, yesterday we saw risk sentiment turn positive again, which benefited risk assets. Commodities, risk currencies and stock markets turned bullish yesterday with commodities making the most of it. Oil turned bearish after comments from OPEC that they will raise Oil production output by 648K in July and August, a month earlier than they had previously mentioned.

Crude Oil was already bearish after the failure to break above $120 on Tuesday, with US WTI heading toward $110, but we saw a big jump which sent the price above $116, which was a clear indication that some big players are buying Oil big time to keep it on an increasing trend. The USD gave back the gains it made on Wednesday, so we are when we were back then.

The Data Agenda Today

Today is a services day, as several services reports are expected to be released. Earlier this morning we saw the final services PMI figures from European countries and soon the Eurozone services PMI as well as the retail sales for March will be released. In the US session, we have the US ISM services and the employment report for last month, although markets will trade the risk sentiment mostly ahead of the weekend.

Forex Signals Update

After having a great day on Wednesday with several winning signals in a row as the risk sentiment improved and the USD turned bullish, we opened six signals yesterday. Most of them were in forex, but we had two in commodities and cryptocurrencies as well. Eventually, we closed the day in breakeven with three winning and three losing signals.

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. Yesterday we saw another small pullback during the European session which ended at the 50 SMA (yellow) on H1 chart, where we decided to buy. We closed the trade at the 20 SMA (gray) after the bounce.

USD/JPY – 60-minute chart

EUR/GBP – Buy Signal

EUR/GBP has turned bullish since the middle of last month, as Bank of England is failing to stop inflation from increasing further, while the ECB hasn’t started hiking rates yet. Moving averages have been keeping this pair bullish and yesterday we decided to open a buy signal at the 50 SMA (yellow) on the H4 chart, booking profit as the price bounced off that moving average.  

ETH/USD – 60-minute chart

Cryptocurrency Update

Cryptocurrencies turned bullish on Monday after consolidating for two weeks, but the jump faded not much higher. We got a trade as the price moved up and another one as it reversed lower again, but the decline in cryptocurrencies stopped above the previous lows, so we decided a buy signal on Ethereum yesterday.

ETHEREUM – Buy Signal

Cryptocurrencies had a bullish attempt earlier this month, with Ethereum reversing at $1,700 lows and climbing above $2,000. Yesterday we saw a bearish reversal, but it seems like the decline stopped above previous lows. Today sellers tried again but the low got even higher and we decided to open a buy signal after the doji candlestick at yesterday’s low.

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