Yesterday’s Market Wrap

After the bullish reversal in the USD on Wednesday, it was interesting if the Buck would continue the bullish momentum. Although, buyers remained in control as well yesterday, and the USD rallied for another 100 pips, with EUR/USD falling below 0.98 after reaching parity earlier this week. Most assets declined as a result, apart from Oil which continued to rally higher after OPEC’s decision to cut production by 2 million bps, and Gold.

Regarding the economic data, German factory orders and retail sales declined once again in September, weighing further on the Euro, since it will make the ECB more hesitant regarding future rate hikes after the 75 bps hike planned this month. The US unemployment claims and the Canadian Ivey PMI softened in the US session. Nonetheless, ECB and FED members continued to make hawkish remarks.

Today’s Market Expectations

Today started with German industrial production and retail sales, which remained negative in September for yet another month. All signs are pointing to a recession in the Eurozone, but the ECB is standing firm on rate hikes for now, although let’s see how long they can keep it. Later in the afternoon, we have the US and Canadian employment reports, with the unemployment rate expected to remain unchanged in both countries during September.

Forex Signals Update

Yesterday the volatility was not too high, but the commodity markets were without a clear direction. We opened five trading signals, mainly in forex but also in Gold, and ended up with three winning and two losing signals. We traded mainly crosses since we weren’t sure about the USD reversal, which did continue yesterday.

Trying the Downside Again in GOLD 

Gold turned bullish on Monday last week as the USD went through a strong retreat. We turned hawkish on Gold as well, buying the dips at moving averages on smaller timeframe charts. On Wednesday Gold retreated lower as the USD started to reverse higher and we opened a couple of selling signals which closed in profit. Yesterday we decided to remain short as the bullish momentum in the USD continued and the 50 SMA was broken on the H1 chart, but there was no continuation after that.

XAU/USD – 60 minute chart

Selling GBP/USD 

GBP/USD picked a massive pace during the decline in September, but after the intervention from the Bank of England the bond market stabilized in the UK and this pair reversed higher, helped by the weakness in the UD as well. Although the bullish retrace higher seems to have ended and yesterday my colleague Arslan opened a sell forex signal here, which closed in profit as the decline escalated further.

GBP/USD – H1 chart

Cryptocurrency Update

Cryptocurrencies traded sideways yesterday after turning slightly bullish earlier this week. BTC has climbed above $20,000 and it is staying there. Although we are not seeing much buying pressure anymore, and crypto has reached the top of the range, so there might be a reversal lower soon.

XRP/USD Continued the Bounce

Ripple surged above $0.50 last week, as the law case against the SEC saw some developments. The price has retreated lower a couple of times, but buyers are still prevailing. Earlier this week we saw a second retrace but the 100 SMA (green) held as support and now the bullish momentum is back on.

XRP/USD – Daily chart

The 200 SMA Turns into Support for BITCOIN

Bitcoin has been trading sideways, for about a month, mostly below $20,000, with the 200 SMA (purple) acting as resistance at the top. On Wednesday we saw a bullish move and buyers pushed above the 200 SMA which has now turned into support, so let’s see if it will hold.

ETH/USD – Daily chart