Yesterday’s Market Wrap
Yesterday started with the Reserve Bank of Australia (RBA) releasing the minutes from its last meeting, which repeated the comments in the press conference, that rate hikes are not on a pre-set path. Earnings softened in the UK despite inflation continuing to increase, while the economic sentiment in the Eurozone declined further.
The most important release yesterday was the inflation report from Canada, which showed a slowdown in July, following the situation in the US. Bank of Canada’s Macklem said that inflation in Canada has come down a little, but it remains far too high, so rates of another 75 bps rate hike from the BOC remained high. The consumer figures from the US remained positive, so the situation in the US is looking a bit brighter now.
Today started with the Q2 Wage Price Index from Australia and the Rate decision from the Reserve Bank of New Zealand, which raised them by 0.50% again, taking them to 3.00%. The Eurozone flash GDP for Q2 which will be released shortly is expected to remain unchanged. Core retail sales for July are expected to show a small decline, but the main event will be the Fed meeting minutes, which will give some more clues if the market should expect the FED to deliver another 75 bps rate hike or slow down to 0.50%.
Forex Signals Update
Yesterday we had another positive day with our trading signal which has continued for several days, after last week’s we had some difficulties with our forex signals as markets remained uncertain. But closed the week pretty well nonetheless, with many winning signals in the last two days. Yesterday we continued that performance and opened signals across different markets, all of which closed in profit.
GOLD – Sell Signal
We have been buying and selling Gold as the price moves around, although yesterday we decided to open a sell Gold signal, as the trend turned bearish this week and the 20 SMA (gray) was providing resistance on the H1 chart. The USD kept the edge as the risk sentiment remains uncertain.
Gold XAU – 60 minute chart
Remaining Short on USD/JPY Below the 200 SMA
USD/JPY has been on a retreat since the middle of July after the massive rally from March onward. During the bullish trend we kept buying pullbacks on this pair, but now we are selling retraces higher. Yesterday we opened two sell forex signals here at the 100 SMA (green) which was acting as resistance and both of them closed in profit.
USD/JPY – H4 chart
Cryptocurrencies remained bullish last week as they continued to make higher highs. Ethereum climbed above $2,000 while Bitcoin increased above $25,000. In recent days we have seen a small retreat, but it seems weak and we’re getting ready to buy cryptocurrencies again,
Buying BITCOIN at the 50 SMA
Bitcoin turned bullish again last week, resuming the uptrend after the retreat in the previous week and the support provided by the 20 SMA (gray). We opened a buy BTC signal which closed in profit as the price moved above $25,000, although the 100 SMA (green) has been acting as resistance on the daily chart. We decided to open another buy trade after the retreat yesterday at the 50 SMA (yellow) on the H4 chart, which was working as support.
BTC/USD – H4 chart
Placing A Buy Pending Order on ETHEREUM?
Ethereum remains one of the most bullish cryptocurrencies, despite the occasional pullback lower. Ethereum buyers pushed the price above $2,000 last week, although we have been seeing a pullback over the weekend. We are following the price action to see where we can buy this digital coin, either at the 50 SMA (yellow) or the 100 SMA (green).
ETH/USD – 240 minute chart