Forex Signals Brief for March 6: Will the USD Resume the Uptrend This Week?
Last week most currencies consolidated, but the US started resuming the momentum toward the end of the week, which might continue this week
Last Week’s Market Wrap
February was characterized by a return of USD buyers, after the Buck had been in retreat mode since October last year. the economic data started improving in January which continued the trend last month and the FED shifted the rhetoric into a more hawkish one. This kept the USD bullish for most of last month, although during the first half of last week, we saw a decent retreat in the USD.
Durable goods orders posted a sizeable decline of 4.5% in January, which was a sign that the bounce in the US economy is not as strong yet, although this report is volatile and capital goods orders posted an increase. On Tuesday the Conference Board consumer confidence showed a decent softening which was another signal, which was enough to push the USD down. Although the buck returned in the second half of the week and most currencies closed the week unchanged, so let’s see what March will bring.
This Week’s Market Expectations
This week starts with inflation figures from Switzerland, which are expected to show another sizeable increase last month, followed by the RBA meeting on Tuesday, which is expected to deliver a 25 basis points hike. The Bank of Canada is also holding its meeting on Wednesday, but they are not expected to continue with rate hikes and should hold them at 4.50% this time. The UK GDP report is scheduled for Thursday, while on Friday we have the US employment report to be released.
Forex Signals Update
The USD retreated lower during the first part of the week as we saw some soft economic numbers from the US, which improved the sentiment. We got caugt up on the wrong side during that retreat, but returned back to the great performance in the second half of the week. We opened 25 trading signals in total, ending up with 10 losing ones and 15 winning forex singals.
The 100 SMA Holding as Support for GOLDÂ
Gold hgreat ad a performance last week as most assets traded sideways, while XAU/USD continued pushing higher abovemoving averages. March is historically a poor month for Gold but bulls should not ignore it as itmight be heading for $2,000 if the economic data weakens in the US, such as the soft consumer confidence numbers we saw this week.
XAU/USD – 240 minute chartÂ
The 100 SMA Pushing GBP/USD DownÂ
GBP/USD tunred bearish last month after being bullish in January and fell below 1.20. Although, it has formed a support zone below that major level which held throughout February. But. the highs keep getting lower, which is a bearish sign, so we will try to sell retraces higher on this pair.
GBP/USD – 240 minute chart
Cryptocurrency Update
In the first half of February, cryptocurrencies turned bullish as risk sentiment improved and made new recvent highs, but they reversed lower eventually and right now they are in a bearish phase. Last week was bearish too, although the delcines have been small and right now cryptos are consolidating.
BITCOIN Slipping Below the 50 Daily SMA
Bitcoin has been bullsih since ealry January although we have seen a retreat since the held better than other risk markets. the price slipped below the 50 SMA 9yellow) on the daily chart, but over the weekend the decline stalled and now BTC traders are trying to decide.
BTC/USD – 240 minute chart
The 50 SMA Holding As Support for ETHEREUMÂ
Ethereum pushed above moving averages in January which soon turned into support, especially the 200 SMA (purple). But, buywrs are having difficulties at the resistance zone below $1,800 and last week sellers pushed the price below the 50 daily SMA. So, let’s see if the 200 SMA will hold again now.
ETH/USD – Daily chartÂ
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