Last Week’s Market Wrap

In previous weeks the sentiment turned negative for the USD and stock markets. The USD had been on a bullish trend during March and April as the FED turned massively hawkish due to surging inflation, but inflation is surging everywhere so most major central banks have turned hawkish as well now, which has been helping respective currencies, while the USD has been retreating since last month.

Services and manufacturing in Europe posted a slight slowdown although they are holding well despite the surge in prices, although it remains to be seen in the coming months, because UK services slow down considerably last month. In China, the economy is coming out of contraction as lockdowns come to an end, which has also been improving the risk sentiment in financial markets.

The Data Agenda Today

Most of the major markets are closed today due to Whit Monday, so the price action is expected to be slow. Chinese Caixin services are the most important economic release today, while this week the US CPI inflation will take the attention. After last week’s mixed price action, let’s see if the USD will resume the larger bullish trend this week.

Forex Signals Update

Last week we had a drawdown, although it was a successful week nonetheless. Most of them were in forex, but we had two in commodities and cryptocurrencies as well. Eventually, we closed the week in profit with more winning signals than losing ones.

GBP/USD – Sell Signal

GBP/USD has been bearish for about a year which picked up pace this year. But the retreat in the USD since the middle of May has sent this pair higher. The retrace higher seems to have ended though and last Friday we decided to open a sell signal on this pair at the 100 SMA (green) which rejected the price.  

GBP/USD – 60-minute chart

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

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.

GBP/USD – Sell Signal

GBP/USD has been bearish for about a year which picked up pace this year. But the retreat in the UDSD since the middle of May has sent this pair higher. The retrace higher seems to have ended though and last Friday we decided to open a sell signal on this pair at the 100 SMA (green) which rejected the price.  

GBP/USD – 60-minute chart

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

Has the 20 SMA Turned into Support for Cardano?

ADA/USD has been bearish since September last year when it released the Alonzo upgrade, although it took some time for it to become functional and launch auctions. That improved the sentiment somewhat for Cardano but it kept pushing lower until late last month. But the jump pushed the price above the 20 SMA (gray) on the daily chart which seems to have turned into support now. So, this might be a good place to look for longs in ADA/USD.

Buyers gave up at the 20 SMA again