Yesterday’s Market Wrap

Yesterday was mostly about the US durable goods orders and pending home sales, after the July services and manufacturing data released n Tuesday. Services came negative but they were not horrible, while yesterday’s durable goods orders report showed an economy that is stable. Non-defense capital goods orders excluding aircraft rose 0.4%, slightly better than 0.3% expected and June’s figure was also revised higher.

That leaves traders back where they were at the beginning of the week and uncertainty prevails. Now many market participants are looking forward to the Jackson Hole symposium where the FED chairman Jerome Powell will hold a speech on the economy. Many are expecting a hawkish speech from Powell on Friday and will leave most markets on limbo until then, so we will try to trade ranges during this week.

Today started with the retail sales from New Zealand which posted a decent increase in Q2, after the decline in Q1. The German Ifo business climate which was released a while ago posted another slowdown this month, which is another sign that the Eurozone economy is heading into a recession as well. Later in the North American session, we have the second reading for the US Q2 GDP which is expected to show a slight improvement from -0.9% to -0.7%, while in the evening the Jackson Hole symposium will start.

Forex Signals Update

Yesterday we opened six trading signals, in commodities, stock indices, and forex. The long-term SPX signal still stands while the other ones have closed. Most of our trading signals closed in profit apart from the CHF signals, as the CHF weakened further yesterday.

Buying GOLD at MAs

Yesterday we decided to shift our position on Gold and open a buy Gold signal, as it turned bullish, following a bearish trend in the last few weeks as the USD uptrend resumed again and we have been insisting on the downside. In the last two days though, we have seen a bullish reversal and yesterday we decided to open a buy forex signal at the 50 SMA, booking profit as the price jumped higher.

XAU/USD – 60 minute chart

Buying the Retreat in S&P500 

Stock markets went through a major retreat during the Q1 and Q2 of this month, as central banks started raising interest rates at an enormous speed, in order to fight inflation. But, it seems like central banks are starting to slow down with rate hikes as the global economy heads into a recession and sentiment is improving a little. So we decided to open two buy signals as the decline stalled at the 100 SMA.

S&P500 – Daily chart

Cryptocurrency Update

Cryptocurrencies continue to crawl higher for the fourth day, although the bullish pressure seems pretty weak. They were bullish for two months as the sentiment kept moving, before turning bearish last week. The decline stopped last Friday and since them they have been crawling higher, althugh pretty slowly.

We’re in Profit Already in ETHEREUM 

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 in this timeframe.

ETH/USD – Daily chart

 [Ripple]] Remains Below MAs

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, although it still remains below moving averages on the daily chart, unlike Ethereum.

XRP/USD – Daily minute chart