Yesterday’s Market Wrap

In the first two days of this week we have seen the USD turn bearish during the Asian and European sessions, but then reverse higher in a sharp move. Yesterday the USD started declining again but there was no bullish reversal to follow. Risk sentiment improved and stock markets completed a bullish day after several bearish ones. All major currencies gained against the USD, particularly the JPY.

Oil continued to slide down during the Asian session but then reversed higher, helping the CAD. EIA crude Oil inventories showed a 0.7 million buildup against a -1.2 million barrel drawdown, which sent Oil prices higher, after yesterday’s API private inventories showed a drawdown. Gold also pushed higher.

Today’s Market Expectations

Today started with the KOF Economic Barometer from Switzerland which showed a slight improvement. The Spanish Flash CPI inflation year-on-year showed a decline to 6.1% earlier today from 6.8% previously. The Chicago PMI, later on, is expected to show an improvement as well from 37.2 points to 40.1 this month, although that still means contraction.

Forex Signals Update

Yesterday the price action was decent in financial markets again, with the USD on a steady decline and risk assets moving higher. The moves were predictable and we had some good results once again. We closed five trading signals in total, while the ing Ripple (XRP) signal closed in a loss as cryptocurrencies moved lower.

Remaing Long on EUR/USD

EUR/USD has been bullish since the end of September, with the 50 SMA (yellow) and the 100 SMA (green) acting as support. We have been mostly bullish since then as the USD decline continues and the signal we opened on Wednesday closed in profit yesterday.

EUR/USD – 240 minute chart

Booking Profit in GOLD    

Gold has turned bullish since November as the USD turned bearish and the sentiment improved less hawkish central banks, which improved the sentiment. The 100 SMA (green) has been acting as support on the H4 chart and we have been buying Gold. We opened the last buy Gold signal earlier this week which closed in profit yesterday ss the buying pressure resumed.

XAU/USD – 240 minute chart 

Cryptocurrency Update

Cryptocurrencies turned bearish again after showing some buying momentum in late November and earlier this month, as risk sentiment improved in financial markets, although last week we saw most major crypto coins trade in a range. Yesterday though the selling pressure resumed again and cryptos started to slip lower.

BITCOIN Remains Soft

Bitcoin surged higher earlier this month afer showing some bullish momentum for several weeks. Buyers pushed BTC/USD above $18,300 but the reversal came and the pressure turned bearish again. BTC fell below moving averages and the 100 SMA (green) is acting as resistance on the H4 chart.

BTC/USD – 240 minute chart

 RIPPLE Reversing at the 200 SMA

Ripple coin surged higher in September as the lawsuit between Ripple Labs and SEC headed toward a resolution, climbing to $0.55. ut reversed back down in November and this week sellers came back again after the failure to push above the 200 SMA (purple).

XRP/USD – 240 minute chart