Yesterday’s Market Wrap

This was a bank holiday weekend in the US, which means that yesterday US markets were closed, so it was pretty quiet. Most major currency pairs ended up where they started after a jump higher and a reversal back down. Commodities such as Gold, Silver and Crude Oil made some decent gains, although the main trend is still bearish.

The most important data release yesterday was the Swiss CPI (consumer price index) inflation which jumped to 3.4% on an annualized basis, which is the highest in almost 30 years. The PPI (producer price index) inflation cooled off a bit last month in the Eurozone, but the Sentix Investor Confidence indicator deteriorated further, which is another negative for the Euro.`

The Data Agenda Today

Overnight we had the Australian retail sales and the AIG Construction index which were the last piece of data before the RBA (Reserve bank of Australia) decided to raise the cash rate by 50 basis points (bps) to 1.35%. The initial service figures from Italy and Spain show yet another slowdown, which means that the ECB will have a tough job fighting inflation on one hand, and trying to keep the economy afloat on the other. Later on, we will have the meeting minutes from the last BOE (Bank of England) meeting which will be followed by a speech from BOE’s Bailey.

Forex Signals Update

Last Friday we had mixed results with our forex signals, but we started this week pretty well, having several winning signals yesterday. We stuck to trading forex apart from the Cardano trade that we have open for nearly a week. We hope to have a good week as we progress ahead.

EUR/JPY – Buy Signal

The Euro has been having trouble as the ECB has waited until later this month to raise rates, but the JPY is in a more difficult position as the BOJ is not thinking about it right now. My colleague went against the trend this time and caught a nice position as the 50 SMA turned into support for this pair.

EUR/JPY – 240 minute chart

AUD/CAD – Buy Signal

AUD/CAD has been bearish since the beginning of April, as the AUD is more affected by the contraction that we saw in China due to lockdowns in Shanghai. Nonetheless, my colleague picked another trade against the trend here, as buyers pushed above the 20 SMA (gray).

AUD/CAD – 60 minute chart

Cryptocurrency Update

Cryptocurrencies have been trading sideways in a range for about two weeks, but they started displaying some bullish momentum in the last two days. Bitcoin climbed above $20,000 again, which could be the beginning of a bullish reversal. But, let’s see.

 ETHEREUM Surviving the $1,000 Level

Ethereum dipped below the major level at $1,000 at the middle of last month, but this time the big level held as support. Sellers retested it at the end of last week, but the price started reversing higher and yesterday it made a decisive move, pushing above all moving averages, with the 200 SMA (purple) turning into support.

ETH/USD – 60 minute chart

ADA/USD Signal – Forming  Support Zone at $0.43-0.45

Cardano continues to remain bearish since the reversal last September, with the highs getting lower. Although a support zone has formed from $0.43 to $0.45 which has been holding. Moving averages continue to provide resistance at the top and the range is getting really narrow, so we are expecting a break and we are going for the upside.

ADA/USD Daily chart