Last Week’s Market Wrap

Last week several central banks continued raising interest rates, which kept the risk sentiment negative in the first half. Then in the last two days, we saw a sudden improvement, which sent risk assets higher and the USD lower. That mood carried over from last week and yesterday stock markets opened with a bullish gap, so it seems that the retreating period has ended for now.

The USD continued to fall back, as the Euro advanced toward 1.02, but then pulled back off that level. Gold and crude Oil continued to make gains yesterday, as did the GBP, despite the miss in UK GDP numbers for July, which came at 0.2% against 0.4% expected.

Today the volatility is lower in most markets as traders wait to see what the US CPI data which will be released later today has to offer, as that will certainly set the tone for the rest of the week. The inflation report is expected to show a small decline of 0.1% in August for the headline number, but the core number is expected at 0.3%. So, a divergence is appearing as Oil prices cool off somewhat, while the price of food and other goods and services continues to grow.

Forex Signals Update

Yesterday we opened six trading signals as the volatility continued, such as buy Ethereum, buy EUR/GBP, buy Gold etc. Although only four of them reached the targets, but all of them closed in profit. So, we had a good start to the week, which we hope to continue until Friday.

Buying GOLD Again 

Gold fell below $1,700 earlier this month, after a strong bearish move during the second half of August. But it has been improving in the last week or so, pushing above moving averages on the H4 chart. Yesterday we decided to open a buy signal as buyers were in control, which closed in profit as the price climbed above $1,730.

Gold XAU – 240 minute chart

Buying GBP/JPY 

This pair was trading on a slightly bearish trend during August, but this month we saw a sharp bullish move, as the decline in the JPY escalated while the GBP found some solid growth. My colleague decided to open a buy forex signal here yesterday which closed in profit eventually.

ETH/USD – 240 minute chart

Cryptocurrency Update

Cryptocurrencies have been bearish since the middle of August and they made their latest bearish move early last week, before reversing higher again and closing the week in gains. Yesterday most cryptocurrencies stopped the climb and some such as Ethereum retreated lower, while Bitcoin continued last week’s momentum, climbing above $22,000.

BITCOIN Testing the 100 Daily SMA Again

Bitcoin has been bearish since November last year and moving averages have been acting as resistance during retraces higher, pushing it lower. In June we saw a test of the 100 SMA (green) after BTC traded in a bullish channel, but buyers failed and BTC fell below $19,000. The reversal has been strong since last Friday and we booked profit on our signal, but now buyers are testing the 100 SMA again on the daily chart so we’ll see if they will be able to break it.

BTC/USD – Daily chart

The 200 SMA Supporting Ethereum 

ETHEREUM was showing decent buying pressure during most of the summer, but went through another decline last month, after briefly climbing above $2,000. The price fell below the 200 SMA (purple) which has turned into resistance at the top and yesterday we saw a decline after the last rejection. Although we closed the signal in profit before the reversal. The decline stalled already and now Ethereum has turned bullish again, pushing above the 200 SMA, which seems to have turned into support, where we decided to open a buy signal.

ETH/USD – 240 minute chart