Yesterday’s Market Wrap

Last Friday we saw a rout in financial markets, as almost everything experienced some major declines, especially risk assets, while the USD rallied higher after last Wednesday’s 75 bps FED rate hike, which is expected to continue raising rates. Yesterday that market sentiment continued and we saw a major decline in all forex pairs and risk assets in the early hours of Asian trading.

We saw some new lows in EUR/USD and GBP/USD, while Oil and Gold also kept declining. The bond market was screaming once again as treasury rates kept increasing. In early European trading, we saw a retrace in the USD, which erased some of the losses, but the selling returned. There were many comments from a plethora of central bankers, but only the RBNZ president Orr’s comments stood out, implying that they might pause with rate hikes after this month’s 50 bps planned hike.

Today’s Market Expectations

Today there are more speeches expected from central bankers, including FED’s president Jerome Powell and member Bullard, as well as BOE’s Pill, although I don’t think their comments will change much. The US Durable goods orders are expected to show a small increase in August, while later on the CB Consumer Confidence, New Home Sales and the Richmond Manufacturing Index numbers will be released.

Forex Signals Update

Yesterday we had a crazy day with our trading signals, opening ten of them, all of which reached the targets pretty quickly as the volatility was enormous. After the decline overnight, we decided to stay short on risk assets, but they reversed higher and we had five losing signals in the morning, although we made up in the afternoon with five winning trading signals as the decline resumed again.

Remaining Short on GOLD 

On Friday Gold resumed the decline and we continued to open sell Gold signals, so we closed a very profitable week with this asset. yesterday we decided to remain short on Gold again as the day opened with another major decline, but got caught during the retrace in the morning. Although we decided to sell again at the 20 SMA (gray) and booked profit on that second Gold signal.

XAU/USD – H1 chart

Selling WTI Oil

Oil retraced higher after falling close to $77 this morning and climbed above $80, but after forming an upside-down pin, which is a bearish reversing signal after the climb, reversed down and ended up even lower. We decided to open several sell Oil signals during the decline, 11 of which closed in profit.

EUR/USD – Daily chart

Cryptocurrency Update

Cryptocurrencies continued to keep a bearish bias last week, as central banks kept raising interest rates, hurting the risk sentiment in financial markets. The selling pressure eased compared to the previous week and we even saw attempts to reverse higher, but they failed, so sellers are still in control.

Buyers Trying to Push BITCOIN Above the 200 SMA 

Bitcoin has been finding resistance at the 50 SMA (yellow) on the H4 chart, which has prevented it from increasing above the $20,000 level. This moving average has been pushing highs lower, but we decided to open a buy signal since buyers are also getting active at around $18,500. Yesterday they were trying to push above the 50 SMA so let’s hope that they succeed.

BTC/USD – H4 chart

MA’s Keeping ETHEREUM Under Control

After the launch of the Ethereum Merge, this cryptocurrency turned bearish as the sentiment turned negative in the financial markets, instead of moving higher. The 20 SMA (gray) was acting as resistance during most of the week, showing strong selling pressure, then the 50 SMA (yellow) came into play, so for now ETH/USD remains bearish.

ETH/USD – H4 chart