Yesterday’s Market Wrap

Last week the USD resumed the bullish momentum again after retreating for more than a week and yesterday we saw a continuation of that market momentum. The markets were closed due to the Columbus Day holiday, so there were no economic releases coming out of the US. However, US stock markets were open, which also continued the decline they started last week.

JP Morgans Dimon’s comments hurt stocks and sent the dollar modestly to the upside. In an interview, he said that stocks could go another 20% lower and that the US was likely to enter into a recession 6-9 months from now. He sees rates moving higher than expected and the next move could be more painful for investors. Gold was the biggest loser, although most major currencies also endured losses.

Today’s Market Expectations

Today the UK employment was released a while ago, showing that earnings increased for the second month, after softening in summer. Later there are speeches scheduled from the FOMC member Mester, MPC member Cunliffe and the SNB chairman Jordan. The volatility is expected to be low, since the economic calendar is light, although let’s see what the US session will bring.

Forex Signals Update

Yesterday the volatility was low, with a light calendar and US markets being closed. As a result, the number of trading signals was low, at three in total, two in Gold and one in forex, all of which hit the take profit target eventually. Today we will follow Gold again since it turned quite bearish yesterday, so we will try to sell retrace higher.

Remaining Short on GOLD 

Gold has been bearish since March, after failing to hold gains above $2,000. The 50 SMA (yellow) has turned into the ultimate resistance on the daily chart which rejected the price last week. We turned bearish again and yesterday opened two sell Gold signals, both of which closed in profit.

XAU/USD – 240 minute chart

Buying USD/JPY Again

USD/JPY dived more than 5 cents lower after the intervention from the Bank of Japan last month but recuperated well, although until last week it was trading sideways. But the bullish momentum resumed again and the 20 SMA (gray) has turned into support on the H1 chart. We decided to open a buy signal yesterday at that moving average, which closed in profit as the upside momentum continued.

USD/JPY – H1 chart

Cryptocurrency Update

Cryptocurrencies have been trading in a range for more than a month, with Bitcoin trading above and below $20,000. Early last week cryptocurrencies turned bullish and BTC increased above that major level, but with the bullish reversal in the USD and the risk sentiment turning negative, crypto coins turned lower again from the top of the range, apart from Ripple, which continues to make gains.

 BITCOIN Flirting with $19,000

Bitcoin continues to trade in a range, mostly below $20,000 but also moving above that level at times as well, with the 200 SMA (purple) acting as resistance at the top. Although wither side has the will to take the price too far away fom $20,000. On Wednesday we saw a bullish move and buyers pushed above the 200 SMA which has now turned into support for some time, but it broke that moving average as the USD gained momentum. But, that’s good since we’re looking to buy BTC near the lows above $18,500.

BTC/USD – H4 chart

RIPPLE Testing $0.50 After the Retrace

Ripple has been bullish since the middle of last month, surging above $0.50 last week, as the lawsuit against the SEC saw some developments. The price has retreat, so the bullish momentum coned lower a couple of times, but the 20 SMA (gray) has turned into support, holding the price, while the 200 SMA (purple) turned into resistance for some time. Although last week we saw a breakout of the triangle to the upside so the bullish momentum continues.

XRP/USD – H4 chart