Yesterday’s Market Wrap

Yesterday was inflation day, with UK inflation increasing to 10.1%  in September, while the Eurozone and Canadian CPI (consumer price index) inflation ticked lower, although it still remains at very elevated levels, with the respective central banks keeping a tightening policy. The USD was bid during the European session, with USD/JPY crawling ever closer to 150.

All assets ended the day lower, including stock markets, apart from crude Oil which caught a decent bid in the US session after a 1.725 drawdown in the EIA crude reserves. US President Biden appeared in the afternoon saying that Gas prices are squeezing family budgets and the US government is to sell 15M barrels from the SPR. Crude Oil climbed above $86 despite that, although it stalled and traded close to $85.

Today’s Market Expectations

Today started with a speech from FOMC Member Bullard, followed by the September employment report from Australia. The Chinese GDP report was released after that, showing a bounce in economic activity in Q3, after a cool-off in Q2. Philly Fed manufacturing index, existing home sales and US unemployment claims will be released later before the US session starts, so there’s not much to drive the markets.

Forex Signals Update

Yesterday the volatility was low again, although higher than on Tuesday, as markets started to move in favour of the USD. Risk assets declined and we remained long on the USD, opening six trading signals. Most of them were forex signals, although we also opened a Gold signal and an Oil signal. We ended up with four winning forex signals and two losing ones.

Selling WTI Oil Before Reversing higher    

Crude Oil has been bearish since the beginning of last week and moving averages have been doing a great job as resistance during retraces higher, Yesterday we decided to open a sell signal at the 20 SMA (gray) which rejected the price and we booked 80 pips here before the reversal in the USS session.

USD/JPY – 60 minute chart

Giving Up on EUR/CHF 

EUR/USD has been bearish on long term charts such as the H4 chart below, and moving averages have been great indicators to sell this pair after retraces higher. We decided to open a sell signal here at the 200 SMA (purple) on the H4 chart, which rejected the price and we booked profit on that trade.

EUR/USD – 240 minute chart

Cryptocurrency Update

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

BITCOIN Steady Above $19,000

After the release of the US consumer inflation report last 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 Failing at the 200 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