Forex Signals Brief for June 27: European Inflation and Manufacturing Data
Last week the USD continued the retreat on Powell's hesitation, while this week we'll have a look at European inflation and manufacturing
Last Week’s Market Wrap
Last week we had the CPI (consumer price index) inflation reports from the UK and Canada, which showed another increase for May. Increasing inflation is hurting the consumer, which was confirmed by the cool-off in services all over the world as last week’s service reports showed. The USD lost some ground as FED Chairman Jerome Powell refused to confirm further strong hikes, such as the 75 bps that we saw in the last meeting.
That improved the risk sentiment in financial markets, sending stock markets higher toward the end of the week. Crude Oil continued the second leg down last week toward $100, after the small crash at the end of the previous week, but closed the week with a bounce higher.
The Data Agenda This Week
This week starts with the US durable goods orders and CB consumer confidence, which are expected to show a slowdown. The CPI inflation figures will be released from different European countries before the Eurozone inflation report gets released. Although a number of speeches are in the schedule from different central bankers as they meet in Lisbon this week, which will decide the risk sentiment in the markets.
Forex Signals Update
This week we had a good run during the first half, despite the market being pretty slow. We had some difficulty during the middle of the week as volatility picked up and the uncertinty increased. But, managed to close the week with several winning signals on Friday, so last week was another successful week for us.
GOLD – Selling Retraces Higher
Gold has been on a bearish trend since March. The downtrend has sllwed, but XAU/USD continues to make lower highs, which is a bearish signal and we have been trying to sell retraces higher. We opened several sell signals on Gold, most of which closed in profit as sellers still remain in control.
XAU/USD – H4 chart
USD/JPY – We’re Keeping A Bullish Bias
The JPY remains bearish as the Bank of Japan stays on hold with interest rates, as CPI inflation remains under control there. The FED has picked up the pace of rate hikes, which has been keeping this pair really bullish. We have been long most of the time on USD/JPY, and will most likely remain bullish this week as well.
USD/JPY – 240 minute chart
Cryptocurrency Update
Cryptocurrencies continued to recover slowly last week after the crash in the previous week, although the pace remains pretty slow. Nonetheless, buyers remain in charge for nearly 10 days, yet the uncertainty remains high as he war on cryptos conotinues.
ETHEREUM Pushing Above MAs
Ethereum was showing strong selling pressure since last November as shown on the H4 chart below, falling below $1,000 earlier this month. On Sunday following the crash, ETH made a strong comeback but the buying pressure since then has been weak although buyers keep pushing higher slowly. Now ETH/USD has climbed above moving averages which is promissing, but buyers should push above the 200 SMA (purple) for the trend to be considered bullish.
ETH/USD H4 chart
Axie Infinity at A Decisive Moment
AXS/USD was putting a great performance from July last year until November, when the sentiment turned bearish in the crypto market. Since then, the 50 SMA (yellow) has been the ultimate resistance on the daily chart. The price bottomed at $12.50 but has been recuperating slowly since then and now buyers are facing the 50 SMA again. if they fail to push above it, then it is likely that the bearish trend will continue.
AXS/USD – Daily chart
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