Yesterday’s Market Wrap

The USD was trying to get back on its feet but last week it resumed the decline after US PMI manufacturing numbers showed that this sector fell in contraction. That was another factor for the FED to start slowing down with rate hikes. Although we have heard mixed comments from FED members during this week, but Jerome Powell made it clear late in the evening during his speech, saying that it is probably time to start slowing down, since he doesn’t want to overtighten.

The USD reversed lower after making some decent gains earlier in the day, after inflation numbers. In Australia, consumer inflation slowed to 6.9% year-on-year while in the Eurozone it cooled off to 10% from 10.6% previously. The ADP employment came out much weaker than expected but the US Q3 GDP was revised higher to 2.9% from 2.6%, with the JOLTS Job Openings also coming above expectations.

Today’s Market Expectations

Today we will see if markets will continue the positive sentiment that followed Powell’s speech, as US stock markets rallied higher. The reopening in China will also have some impact on markets as well. The Chinese Caixin manufacturing PMI for November posted another slowdown as lockdowns continue, falling deeper into contraction. Eurozone manufacturing PMI also remains in contraction as today’s final reports for November showed, while the US ISM manufacturing will take the spotlight later in the afternoon, which is also expected to fall in contraction below 50 points.

Forex Signals Update

Yesterday the volatility picked up again and we saw the opposite of the price action of the previous two days, as the USD rallied during the European session, but then reversed back down. Although, we came out on top, after closing the day with four winning and two losing signals.

 Buying GBP/USD 

GBP/USD has turned bullish since late September after the intervention from the Bank of England, which improved the sentiment for the GBP. As a result, this pair climbed to 1.2150s, but earlier this week we saw a retrace lower. Although my colleague Arslan opened a buy GBP/USD signal here yesterday which closed in profit after the bullish reversal.

GBP/USD – H4 chart

Buying GOLD at the 50 SMA

Gold turned really bullish early this month as the USD turned bearish and this market sentiment still continues. Although we saw a slight pullback in the last two weeks but buyers still remain in control. We opened a buy Gold signal at the 50 SMA (yellow) yesterday which also closed in profit after the jump.

XAU/USD – H4 chart

Cryptocurrency Update

Cryptocurrencies seem to be getting back on their feet after they stopped declining early last week with BTC finding support at around $15,500. This week they have been making progress steadily as the risk sentiment in financial markets continues and yesterday we saw another bullish move after Powell’s speech.

[[Bitcoin] Pushing to $17,000

Bitcoin has formed a support zone at around $15,500 where it started turning around last week after retesting the lows on Monday. The price has moved above the first three moving averages on the H4 chart and yesterday we opened a buy BTC signal as the bullish momentum was picking up

BTC/USD – H4 chart

[[Dogecoin]] Finding Support at 200 SMA

Dogecoin surged higher after Elon Musk took over Twitter, but declined with the whole crypto market after the ETX event. Although it stopped declining and turned bullish again last week, gaining more than 50% as it pushed above all moving averages on the H4 chart. Now the 200 SMA (purple) has turned into resistance so buyers are in control.

DOGE/USD – H4 chart