Yesterday’s Market Wrap

Yesterday started with positive risk sentiment, coming from Monday when stock markets made some decent gains, while the USD retreated. Stocks continued to move higher in the European session yesterday, but then reversed as the sentiment turned negative, and the USD found some bids. Although in general, the volatility was low.

Early in the Asian session, the minutes from the last meeting of the Reserve Bank of Australia were hawkish, suggesting that they will carry on with rate hikes, despite hinting at stopping them last month. The German and the Eurozone ZEW economic sentiment showed a slight improvement this month, but it remains deeply negative. Crude Oil was bearish yesterday, losing around $3 as US WTI crude fell to $82.

Today’s Market Expectations

Today started with the UK consumer inflation CPI (consumer price index) report being released earlier on, which was expected to show an increase from 9.9% to 10.0%. The Eurozone final CPI reading which will be published shortly is expected to remain unchanged at 10.0%. The Canadian CPI inflation report will be released ahead of the US open and is expected to slow to 6.8% in September from 7.0% in August.

Forex Signals Update

Yesterday the volatility was low again, although we did manage to open five trading signals, all of which in forex. Two of them closed in profit while the other two hit stop loss as markets turned around and continued to remain without a clear direction throughout the day.

Keeping USD/JPY Longs    

USD/JPY continues to remain really bullish, as it heads for 150. The Bank of Japan keeping interest rates on hold as inflation remains under control there, is keeping the JPY weak. In the last few days we have been buying this pair and all USD/JPY signals have closed in profit. 

USD/JPY – 60 minute chart

Giving Up on EUR/CHF 

EUR/CHF has been bearish on long term charts such as the daily chart below, and moving averages have been great indicators to sell this pair after retraces higher. We decided to open a long term sell signal here at the 50 daily SMA (yellow). But the CHF has turned bearish and the retrace has continued higher above the 50 SMA, so we decided to close this signal in loss yesterday.

EUR/CHF – 60 minute chart

Cryptocurrency Update

Cryptocurrencies continue to bounce up and down in a tight range and in fact, the range is getting narrower. On Monday digital coins were climbing higher as the sentiment remained positive, but they turned lower yesterday as the sentiment turned negative in the US session. This sort of price action is making it difficult to open additional crypto signals.

BITCOIN Returns to $19,000

After the release of the US consumer inflation report las Thursday, BTC crashed quickly to $18,200 lows, which is a strong support zone, since it has been holding for more than a month. We decided to open a buy signal down there and now we are well in profit after the jump higher. Although buyers are having some difficulties pushing above $20,000 where our take profit target is, so we might close this trade manually

BTC/USD – H4 chart

 ETHEREUM Testing the 100 SMA

Ethereum has been trading sideways in a range for a month, since the decline in September, although last week we saw sellers take a stand and give this crypto a push lower. But, the decline stopped at $1,160 and buyers returned again. They tried to push above the 20 SMA, but failed and the price reversed down yesterday.

ETH/USD – H4 chart