Forex Signals Brief Aug 24: Attention on US Durable Goods Orders and Home Sales After Yesterday’s Dive in Services

Yesterday's dive in US services activity hurt the USD, so today's home sales and durable goods orders will attract plenty of attention

Skerdian Meta•Wednesday, August 24, 2022•2 min read

US new home sales are reversing the slowing trend of 2024

Yesterday’s Market Wrap

Yesterday the attention was on the July services and manufacturing data from Europe and the US as an indication of where the global economy stands right now, after cooling off considerably in recent months. In the Eurozone the numbers were pretty mixed, leaving both sectors around the flat level, while in the UK manufacturing fell into contraction.

Traders were waiting for some bad figures to cement EUR/USD below parity, but that didn’t happen and later in the US session we saw services dive deeper into contraction in July, which lowered the odds of the FED delivering another strong rate hike. This hurt the USD and helped risk currencies, so EUR/USD peaked above parity again.

The Data Agenda Today

After yesterday’s services report which showed a dive in the activity in US, today the attention will be on the US pending home sales, but particularly on the durable goods orders. Yesterday we saw a dip in the USD after the horrible numbers, but it survived the day. If today’s numbers are bad too, then the risk trade will be bullish throughout this week probably, while the USD will resume the retreat.

Forex Signals Update

Yesterday we continued the positive performance after having several winning signals on Monday. We remained long on the USD until the services and manufacturing report was released, which proved to be a good trading strategy, resulting in five winning forex signals and a losing signal in total.

Selling GOLD During the Downtrend

Gold has been on a bearish trend in the last few weeks as the USD uptrend resumed again and we have been insisting on the downside, opening many sell Gold signals. yesterday we continued to keep that bias until the US services report was released and booked profit on two Gold signals as MAs were keeping the pressure to the downside.

Gold XAU/USD – 15 minute chart

Buying USD/JPY at MAs

USD/JPY resumed the bullish trend again in the last several days, as the sentiment turned negative in the financial market, indicating that the JPHY is giving up the safe haven status. We have been buying the retreats lower and decided to open a signal at the 50 SMA, booking profit as the price moved higher, before the crash post services report.

USD/JPY – H1 chart

Cryptocurrency Update

Cryptocurrencies had been on a decent bullish trend for two months as the sentiment kept moving, before turning bearish last week. The decline stopped last Friday, but the buying pressure has been really weak and most major crypto coins are trading near the lows, apart from Ethereum which has been making some decent gains.

Buying [Ripple]] Making Small Gains After Breaking the Channel

Ripple has been one of the most bearish among major cryptocurrencies after the SEC (Securities and Exchange Commission) opened a lawsuit against the company. Although we decided to open a long-term buy signal here, after the latest decline, following the rejection at the 100 SMA (green) on the daily chart. XRP keeps holding above previous lows which is a positive signal.

XRP/USD – Daily minute chart

ETHEREUM Starting to Bounce Off the 100 SMA

Ethereum remains one of the most bullish cryptocurrencies, despite the last pullback lower. The decline stopped at moving averages which are acting as support and we decided to open another buy Ethereum signal since the stochastic indicator is oversold as well on this timeframe.

ETH/USD – Daily chart

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ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.