Yesterday’s Market Wrap

Yesterday markets started moving again after a quiet Monday due to the bank holiday weekend in the US. It started with the Reserve Bank of Australia raising interest rates early in the morning by 50 bps for the second time in a row. Although, that didn’t help the AUD much, as the USD got broad bids against all major currencies, after EUR/USD crashed lower, falling below 1.03. That’s as the ECB prepares to start raising rates this month, although the pace of monetary tightening remains the issue here.

Crude Oil reversed lower at some point yesterday and went through another small crash, as the demand side is showing signs of strain due to high prices. WTI headed toward $100 again, which indicated that this level would be broken sooner rather than later, as the price keeps returning to it and it finally gave way, as WTI crude fell to $97.40. The sentiment was negative overall as commodities and stock markets also had a terrible day.

The Data Agenda Today

Today will be all about the sentiment in financial markets once again, although the ISM services report and the FOMC meeting minutes will have their say in the evening. The services report will show if the US economy is slowing as a result of higher prices, while the FED minutes will show if they are willing to keep the pace of rate hikes. Before that, we have Economic Forecasts from the European Commission, which will be a factor for the Euro.

Forex Signals Update

Yesterday we had another good day with forex signals, opening several signals, with only one hitting the SL target while the other signals were closed in profit. So, we’re having a good run with our trading signals this week after opening two long term signals which reached the take profit targets in a few hours as the volatility exploded.

USD/JPY – Buy Signals

The JPY has been having trouble as the BOJ is denying the idea of interest rate raises right now. The USD has been gaining strength, so we have been keeping the bullish bias for this pair, opening many buy signals. Yesterday we opened two signals on the long side on this pair, both of which closed in profit.

USD/JPY – 240 minute chart

GOLD – Buy Signal

Gold has been on a bearish trend since March this year, after failing to hold on above the $2,000 level and moving averages have been acting as resistance lately. We have been short on Gold, and yesterday my colleague opened a long term sell signals, which closed in profit pretty soon as Gold tumbled lower.

XAU/USD – 60 minute chart

Cryptocurrency Update

Cryptocurrencies have been showing some bullish signs in recent weeks, despite trading sideways in a range. Bitcoin climbed above $20,000, then it fell back down below that level to turn bullish again and close the day bullish above the big level. So, buyers are starting to show around this level for BTC which also brought the crypto market up.

 BITCOIN Trying A Bullish  Breakout?

Bitcoin has declined below $20,000 many times in the last several weeks but it has reversed and climbed above it pretty quickly. This shows that buyers are active below that level and yesterday we saw the best example of that. The price eventually moved above the 20 daily SMA (gray) which is the first step.

BTC/USD – Daily chart

ADA/USD Signal – trying to Break Above Moving Averages

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 – 240 minute chart