Forex Signals Brief for August 25: Jackson Hole Symposium to Close a Quiet Week

Yesterday’s Market Wrap

Yesterday traders were waiting in anticipation of the US Q2 GDP revisions and Powell’s speech at the Jackson Hole Symposium, after the US durable goods orders and pending home sales earlier this week, which showed that the US economy is stable. The US Q2 GDP was revised higher to -0.6% from -0.9%, which is another positive sign for the US economy, meaning that the FED still has room for further strong rate hikes.

As a result, the risk sentiment turned slightly positive, with stock markets and cryptocurrencies climbing higher. We are already long on S&P500 and certain crypto coins, so this is a positive thing for us. Although, there was still caution as traders were waiting for Jerome Powell’s speech later in the evening.

Today started with a speech from RBNZ Orr at the Jackson Hole Symposium, although Powell’s speech and particularly the speeches from two ECB appearances are expected. Isabel Schnabel and Francois Villeroy will appear on a panel on the “outlook for policy post-pandemic.” The ECB is in a difficult position as Europe is facing an energy crisis, so that might have a bigger impact on the Euro.

Forex Signals Update

Yesterday we had another great day regarding our trading signals. We kept it low since the volatility was low as well, pre-Powells speech, with traders waiting for which direction he will hint at. We opened three forex signals in total, all of which closed in profit as the risk sentiment improved somewhat.

Buying USD/JPY Again

USD/JPY resumed the uptrend last week, after retreating lower in July, but has been trading in a range this week and we have been buying this [air against the support level. We decided to open another forex signal after the retreat down yesterday, which closed in profit as the price bounced back up.

USD/JPY – 15 minute chart

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

Cryptocurrency Update

Cryptocurrencies continue their crawl higher for the fifth day yesterday and most of our crypto signals are in profit now. But the bullish pressure remains weak., with the gains being pretty small during this bullish period. This indicates that another bearish move might follow, so we might close some of the positions here soon.

ETHEREUM Moving Above $1,700

The retreat in Ethereum stopped at moving averages, which turned into support and held the price pretty well. Since then Ethereum has been moving higher and although the climb seems slow, it has gained more than other major cryptocurrencies, moving above $1,700 yesterday, so our signal here is well in profit.

ETH/USD – Daily chart

 Litte Signs of Life for [Bitcoin]]

Bitcoin formed an ascending range as buyers remained in control for two months, following the last crash in June. We kept buying BTC at the bottom of the range, but buyers gave up when the price reached the 100 SMA (green) on the daily chart and BTC broke the range to the downside. We’re looking to buy close to $20,000, but the buying pressure remains really weak.

BTC/USD – Daily minute chart