Yesterday’s Market Wrap

yesterday we saw a continuation of the rout that started last week in financial markets, while bond yields kept increasing. Risk currencies and commodities kept declining, as a number of FED and ECB members confirmed that they will continue raising interest rates. As a result, the USD kept making gains as the only safe haven remaining, with the sentiment remaining negative.

The economic data in the US such as the CB Consumer Confidence, New Home Sales and the Richmond Manufacturing Index showed improvement in the economic conditions, despite the decline in durable goods orders in August. This kept the sentiment positive for the USD, since it gives the FED another reason to remain hawkish in the coming few meetings at least.

Today’s Market Expectations

Today started with the ANZ business confidence in New Zealand which continued to deteriorate, so the RBNZ is doing well to pause with rate hikes for now. The retail sales in Australia softened in August, while the German GfK consumer climate indicator remained deeply negative. Later in the afternoon the US pending home sales are expected to show yet another decline, but we might get a positive surprise. Besides the data, moreFED speakers are on the agenda today, with the Chair Powell and member Bullard expected to speak as the US session starts.

Forex Signals Update

After the impressive reversal in the performance on Monday, getting five winning forex signals after five losing ones, yesterday we kept that performance, opening three trading signals and closing four of them in profit. We remained long on the USD which proved to be the right strategy ince again.

Selling Retraces in EUR/USD 

The decline in EUR/USD has escalated in recent weeks despite the ECB turning quite hawkish and expected to deliver a 75 bps rate hike in the next meeting. We have been selling retraces higher on this pair and yesterday we decided to sell it at the 50 SMA (yellow) on the H1 chart, which has turned into resistance. We booked profit as the price reversed back down.

EUR/USD – H1 chart

Selling SILVER 

Silver has been bearish as well as the sentiment remains negative and the USD remains bullish. Moving averages are acting as resistance at the top, with the 50 SMA (yellow) taking up that duty yesterday, so we decided to open a sell signal here as well, booking profit as the downtrend resumed.

XAG/USD – H1 chart

Cryptocurrency Update

Yesterday wd saw a jump in cryptocurrencies during the European session, as traditional markets remained bearish. This came after the bullish reversal yesterday. But, they couldn’t hold the gains and in the US session, we saw a reversal down again, although we closed one of our crypto signals.

Closing the BITCOIN Signal 

Bitcoin has been declining since the middle of August when cryptocurrencies made a bearish reversal, although Bitcoin continues to find support around the $18,500 zone. On Monday we saw a reversal at this area and yesterday there was a pop, which took the price above $20,000. We decided to close that BTC signal manually before the reversal.

BTC/USD – H4 chart

Can MA’s Turn Into Support for ETHEREUM?

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 last week, showing strong selling pressure, then the 50 SMA (yellow) came into play. But yesterday buyers pushed above these two moving averages, so let’s see if they can hold as support now.

ETH/USD – H4 chart