Forex Signals Brief for January 26: US Q4 GDP to Show a 2.6% Growth

Yesterday’s Market Wrap

Yesterday started with a negative tone in risk sentiment, as stock markets opened with a bearish gap lower, although the sentiment improved and they closed yet another bullish day. The Australian CPI (consumer price index) inflation was expected to show a cool-off in Q4 of last year, but it kept increasing, while the annualized consumer inflation jumped to 8.4% from 8.3% previously.

That sent the AUD higher on expectations of a hawkish RBA ad the USD weakness kept the bullish momentum going for AUD/USD. In the afternoon Bank of Canada delivered a 25 bps (basis points) hike, which sent the CAD higher, but the softer rhetoric turned it around, ending up around 100 pips lower.

Today’s Market Expectations

Today the economic calendar is very light during the Asian and the European sessions, but we have some important releases from the US in the afternoon.  The advance GDP for Q4 is expected to show a slowdown to 2.6% from 3.2% in Q3, but that’s far from recession. Headline durable goods orders are expected to show a 2.6% jump but core orders are expected to decline by 0.2%.

Forex Signals Update

Yesterday we continued the positive momentum from Tuesday. We opened several trading signals both long term and short term, in forex, commodities and crypto, all of which closed in profit, while several remain open. We remained short on the USD which remains a good trade in most assets.

GOLD Approaching $2,000

Gold continues to approach the $2,000 level as it continues to remain quite bullish and yesterday we saw a new high as XAU reached close t5 $1,940. The 50 SMA (yellow) continues to hold as support on the H4 chart which is a good indicator to go long from.

XAU/USD – 240 minute chart 

Selling USD/JPY at the 100 SMA

USD/JPY continues to remain bearish since November, falling below 130. Retraces higher keep being sold and moving averages remain as resistance on the H4 chart. Yesterday we decided to open a sell signal at the 100 SM (green) which closed in profit as the downtrend started to resume again.

USD/JPY – 240 minute chart

Cryptocurrency Update

Cryptocurrencies continue have been showing buying pressure, but they are in a consolidation/retrace period now. Although, yesterday buyers started to come back and we saw a bullish reversal, so the bullish momentum is picking up again but let’s see if they will keep it going.

BITCOIN Reversing Above the 50 SMA

Bitcoin has been in a consolidation in the last several days after the last bullish wave. The price is moving up in waves, and retraces have been either very shallow or we have seen consolidation periods, such as now. That shows that buyers are quite strong and we will probably see new highs.

BTC/USD – 240 minute chart

TYhe 100 SMA Holding As Support for ETHEREUM 

Ethereum was showing selling pressure last year but in the last two weeks, we have seen some strong buying momentum which sent the price above $1,600. Moving averages were doing a great job acting as support on the H4 chart and the latest bounce came at the 50 SMA (yellow). But buyers are retesting that moving average again, so let’s see if it will hold this time.

ETH/USD – H4 chart

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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