Forex Signals Brief for July 27: Uncertainty As the Big FED Day Is Here, Again

Yesterday’s Market Wrap

On Monday the situation calmed down after a very volatile week last week, as traders prepare for the FOMC meeting and the 75 bps rate hike today. Yesterday most markets were quiet again, trading in a range, with uncertainty prevailing. The Euro was one of the few assets to make a move and it reversed lower, sending EUR/USD toward parity again.

The US CB consumer confidence report showed another decline for last month, as well as the new home sales, confirming that the US economy might be heading into recession soon. Core CPI (consumer price index) inflation from the Bank of Japan ticked higher early in the morning, but it remains within a reasonable range.

Early in the Asian session, we had the Q2 CPI inflation report from Australia, which came pretty mixed, while the German GfK Consumer Climate index showed further deterioration. In the evening the Federal Reserve is anticipated to raise interest rates by 0.75% for the second time in a row, taking them to 2.50%. Although before that the US durable goods orders for June will be released, as well as the pending home sales, which will be the last data before the rate hike.

Forex Signals Update

Yesterday we opened many signals despite the volatility being quite low, and we also had some open signals from the previous day. At the end of the day, we had two losing signals and five winning ones, so we had a good performance with forex signals in particular.

WTI Oil Sell Signals

Crude Oil continues to remain bearish, with highs getting lower continuously and moving averages acting as resistance, which are strong bearish indicators. On Monday we opened a sell Oil signal which closed in a loss yesterday as the retrace higher continued. But, we opened another sell signal after the rejection at the 100 SMA (green), which has turned into resistance now and closed that signal in profit as the price reversed lower.

WTI – 240 minute chart

[[EUR/USD] – Sell Signal

EUR/USD has been bearish as well, falling below parity, although we saw a retrace higher last week. But the 20 SMA (gray) turned into resistance this week, which indicates that the bearish trend is quite strong. Ye decided to open another sell forex signal on this pair yesterday, which hit the take profit target as the price reversed lower.

EUR/USD – Daily chart

Cryptocurrency Update

Cryptocurrencies gave traders some false hope last week, as they have done many times since last November when they turned bearish. They pushed above the top of the range where they traded for about a month, but stalled there and started reversing lower, so they have fallen within the range as well.

ETHEREUM Being Rejected at the 100 SMA

Ethereum was leading the crypto market higher last week, as the Merge to the Power-of-Stake which is expected to happen on July 31, is approaching. But, buyers failed to push the price above the resistance at $1,700 and eventually, the price reversed down. We opened a buy signal yesterday as the trend was still on the uptrend, but the reversal took place and we lost that trade.

ETH/USD – Daily chart

 BITCOIN Falling Below the 50 SMA

Bitcoin has been making higher lows in the last several weeks and it is now making higher highs as buyers push the price above the resistance zone and the moving averages on the H4 chart. We opened two sell BTC signals last week, trying short this cryptocurrency at the top of the range, but both signals closed in loss as buyers remained in control.

BTC/USD – Daily chart