Yesterday’s Market Wrap

Yesterday was quiet as UK markets were closed for the funeral of Queen Elizabeth II. Although, markets were carrying over the theme from last week ahead of key central bank meetings later which are expected to deliver some strong rate hikes later this week. The dollar started on the right foot alongside Treasury yields, as 10-year yields reached 3.50% – the highest since 2011. Oil continued lower as the UAE accelerated plans to increase its Oil production capacity.

But the situation reversed as risk sentiment improved and US WTI crude reversed from the lows around $82.10, gaining nearly $4. Stock markets also turned bullish and closed a positive day after four bearish daily candlesticks. Although, markets are on a remain-on-hold move, as traders expect the rate decisions from the FED and other central banks.

Today’s Market Expectations

Today started with the monetary policy meeting minutes from the Reserve Bank of Australia (RBA), followed by the German producer inflation PPI (producer price index) in the early European session. The highlight of the day will be the consumer inflation (CPI) report from Canada, which is expected to show a 0.1% decline in August. Although traders are still waiting for the FED rate decision tomorrow evening, so the volatility is expected to be low.

Forex Signals Update

Last week we opened 28 trading signals in total, including forex signals, crypto signals, commodity signals, and cryptocurrency signals, with the vast majority closing in profit. Yesterday we opened several signals once again, all of which closed in profit.

Remaining Short on NZD/USD 

NZD/USD continues to remain bearish and it is moving closer to the next important target zone, as it trades to a new 2022 lows, reaching 0.59282 so far, while the low price on Friday was 0.59391. We continue to sell this forex pair as the selloff continues and yesterday my colleague opened another sell signal here, which closed in profit eventually.

NZD/USD – Daily chart

Continuing to Trade GOLD  

Gold continues to remain bearish on the long term charts, since reversing in March, after failing to hold gains above $2,000. Yesterday the price reversed higher as the sentiment improved and the USD turned bearish, but there was a slight retreat to the 200 SMA (purple) on the 15 minute chart, which we used to open a Gold signal, that eventually closed in profit.

Gold XAU – 15 minute chart

Cryptocurrency Update

Cryptocurrencies turned bearish last week, after being bullish the previous week and Bitcoin fell below $19,000 again, with Ethereum heading toward $1,200, despite the Ethereum Merge being launched. But, yesterday we saw a bullish reversal as the risk sentiment in financial markets improved.

 BITCOIN Makes A Sharp Reversal

Bitcoin fell below $20,000 again last week after a failed attempt to turn bullish. On Sunday we saw another attempt at the downside from sellers, but yesterday we saw a sharp reversal higher, which shows that there is still buying pressure. Although the climb stalled in the evening.

BTC/USD – H4 chart

Closing the Ripple Buy Signal 

XRP/USD has been one of the most bearish cryptocurrencies since the legal battle with the SEC (Securities and Exchange Commission) started nearly two years ago and the zone around $0.40 turned into resistance since June. In the last three days, we have seen a reversal as both Ripple Labs and SEC are pushing for a quick ruling over the case, which traders thought might go in favour of Ripple, hence the bullish momentum. But, yesterday we saw a reversal after buyers failed to push above $0.40, so nothing is certain yet.

XRP/USD – H4 chart