Forex Signals Brief for October 24: BOC and ECB to Resume Rate Hikes This Week
We have two major central banks planning am 50 bps and a 75 bps rate hikes, on top of the Chinese Q3 GDP report
Last Week’s Market Wrap
Last week, the economic calendar was light, with the UK and Canada consumer inflation CPI report, which showed that prices continue to surge, apart from petrol and energy which has eased. Nonetheless, the price action was satisfactory, especially on Friday. It looked like we were going to get the 13th straight bullish day for USD/JPY after the BOJ signaled no change in policy by expanding bond purchases. That kicked off a spike to 151.94 but the turn came when the FED appeared on a WSJ story downplaying the odds of another 75 bps hike in December.
Jerome Powell’s mouthpiece Mary Daly, who is the President of the SF FED indicated that 4.50-5.00% is still the top end for rates, despite the market trying to price in another hike. That turned the USD bearish in the last trading day while the Ministry of Finance of Japan came in with the hammer, intervening in USD/JPY and sending the pair more than 500 pips lower.
This Week’s Market Expectations
This week, central banks will get back to their monetary tightening cycle, With the Bank of Canada expected to raise rates by 50 bps (basis points) from 3.25% to 3.75% on Wednesday while the European Central Bank is expected to deliver another 75 bps hike, taking rates from 1.25% to 2.00%. Although, analysts are not expecting the trend to change for the Euro because of this, especially if the USD keeps going up, but that’s in question now as well. We also have the GDP report from Canada and China being released this week.
Forex Signals Update
Last week the volatility was on and off, so we had many signals on certain days and very few on some other days. Overall we opened 20 trading signals, in Forex, commodities and cryptocurrencies. We had 13 winning signals in total and 7 losing ones, giving us a 65/35% win/loss ratio. Our most profitable assets once again remained Gold, where we had many signals and only one closed in loss.
Shifting Sides in GOLD This Week?
Gold was bearish for three weeks, falling below moving averages which turned into resistance now, particularly the 1een SMA (gray) on the H1 chart below. So, we were bearish on Gold and most of our trading signals here were on the sell side. But, we might shift to bullish this week after the reversal on Friday, which took the price above MAs, although we will follow the price action in the USD and see if the weakness in the USD will remain.
XAU/USD – 60 minute chart
Remaining Bearish on WTI Oil
Crude Oil has been bearish on long term charts, although early this month we saw a bullish reversal as the USD turned weak. But that didn’t last much and Oil turned bearish again. Moving averages seem to have turned into resistance now, so we’re looking to sell Oil this week, especially with the US midterm elections approaching.
US WTI Oil – 240 minute chart
Cryptocurrency Update
Cryptocurrencies were showing some volatility this week, after a crash at the beginning of a week, followed by a bullish move at the middle of it and then again yesterday. But, all this was within the recent range. So, the rangebound trading continues and we’re looking to close our BTC signal in profit.
BITCOIN Approaching at $20,000
BTC crashed quickly to $18,200 lows last week as well, which is a strong support zone, since it has been holding for two months now. 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 Finally Breaking Above 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 have been trying to push above the 200 SMA and yesterday they succeeded during the strong bullish move.
ETH/USD – H4 chart
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals