Forex Signals Brief for June 8: Final GDP Revision for Japan and Eurozone - Forex News by FX Leaders
Japanese and Eurozone GDP numbers will be revised today

Forex Signals Brief for June 8: Final GDP Revision for Japan and Eurozone

Posted Wednesday, June 8, 2022 by
Skerdian Meta • 2 min read

Yesterday’s Market Wrap

Yesterday the Reserve Bank of Australia delivered a surprise 50 bps rate hike, which sent them to 0.85% from 0.35%. That sent the AUD 100 pips up and down, but most currencies are following the risk sentiment nowadays, so that rate hike which would have sent AUD/USD surging in normal times, didn’t offer much for this pair.

The Eur0zone Sentix investor sentiment improved more than anticipated, but it still remains negative. In the UK, the service sector was revised considerably higher for May, which relaxes the nerves a bit, especially for the BOE which has been hiking rates five times already. The GBP turned bullish after that.

The Data Agenda Today

Today the Japanese GDP report for Q1 of this year was revised lower to -0.3% against 0.2% previously. The Eurozone GDP will be revised shortly as well, although it is expected to remain unchanged at 0.3%. We saw a 5.1 million drawdown in the US WTI crude Oil inventories last week, which helped push Oil prices higher, so we will see how inventories will be this week.

Forex Signals Update

Yesterday we opened several forex signals and a Gold signal. The forex trades and the Gold trade went well, giving us some nice profit after the drawback on Monday. The cryptocurrency signal continues, since Cardano was the only token to make some gains yesterday.

EUR/GBP – Buy Signal

This forex pair has been bullish since March, especially after the major slowdown in UK services for May in the first reading. We decided to open a buy signal at the 50 SMA (yellow) on the H4 chart and booked profit below the resistance zone, before the reversal after the positive revision in UK services yesterday.

EUR/GBP – 240 minute chart

USD/CAD – Sell Signal

USD/CAD has been bearish since the middle of May, with the CAD benefiting from increasing Oil prices as well. This pair reversed above 1.31 and has fallen to 1.25 lows. The 20 SMA (gray) has been providing resistance at the top, showing the strong selling pressure. We decided to open a sell signal at this moving average yesterday and booked profit as the downtrend resumed.

USD/CAD – 240 minute chart

Cryptocurrency Update

Cryptocurrencies have been showing intent to turn bullish since the end of May. We saw a jump back then and a reversal, followed by a period of consolidation. At the end of last week, we saw another jump but that was followed by another bearish reversal on Monday, but yesterday cryptocurrencies made a bullish move gain.

ETHEREUM – The Support Still Holding but the Highs Keep Getting Lower

After the decline in early March as Terra LUNA capitulated, cryptocurrencies have been trading in a range, with Ethereum finding bottoming out at the previous support zone above $1,700. Although, the highs have been getting lower for Ethereum, as moving averages keep pushing the price down. This could go both ways, so we are waiting to see which way the breakout will be and maybe trade it.

ETH/USD – 240 minute chart

Shorting Cardano at the 50 SMA?

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. During this time, moving averages have been acting as resistance on the daily chart, with the 50 SMA (yellow) taking over recently, where we opened a sell signal in Cardano yesterday.

Buyers gave up at the 20 SMA again
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