Inflation resuming the cooling trend in Canada

Forex Signals Brief for March 30: German and Spanish CPI Continues the Slowdown

Posted Thursday, March 30, 2023 by
Skerdian Meta • 2 min read

Yesterday’s Market Wrap

Yesterday markets were quiet, with the economic data being light. In the early hours of the morning the CPI inflation report from Australia showed a bigger slowdown than expected, falling to 6.8% from 7.4%, against 7.2% expected. As a result, the AUD ended up lower against the USD at the end of the day, although other risk currencies didn’t show much resilience, with the bullish trend of the previous days coming to a halt.

Stock markets on the other hand, continued to push higher after opening with a bullish gap. US pending home sales showed a decent increase in February, indicating that the home purchases continue, despite the steep rate hikes by the FED. Later in the afternoon, the EIA rude Oil inventories posted a major drawdown, which should have helped Oil prices further, but crude Oil tumbled around $1.50 after that. Nonetheless, the CAD continued its appreciation  for the third day.

Today’s Market Expectations

Today started with the CPI (consumer price index) inflation numbers from Germany and Spain, showing a slowdown, which is a positive sign for tomorrow’s Eurozone inflation report which will be released tomorrow. Later in the evening we have the final US Q4 GDP, which is expected to remain unchanged at 2.7%, followed by the GDP price index and unemployment claims.

Forex Signals Update

Yesterday the volatility was pretty low again, with most forex pairs and other assets trading in a tight range, which left several of our trades open for today. Although we did manage to close four trades, three of which reached the take profit target while the USD/JPY sell signal closed in loss as the sentiment turned positive and safe havens kept sliding lower.

GOLD Sticking to the 50 SMA

Gold retreated last week after failing to hold gains above $2,000. the 20 SMA (gray) was broken but the 50 SMA (yellow) held as support on the H4 chart, where we decided to open a long term buy Gold signal. Although the price remained stuck between these two moving averages and that trade remained opened.

XAU/USD – 240 minute chart 

Buying WTI Oil at the 50 SMA Again

WTI crude (US crude) has been bullish as risk sentiment remains positive, while yesterday the EIA crude reserves showed a major drawdown. We saw a quick rebound from oversold territory to test the $74.35 level, which rejected the price and Oil retreated lower to the 50 SMA on the H1 chart, which was holding as support.

US Oil – 60 minute chart

Cryptocurrency Update

Cryptocurrencies continue to display buying pressure after the retreat lower earlier in the week ended and buyers came back in. The lawsuit from CFTC against Binance and its founder, Changpeng Zhao, which is another battle of the war on cryptos didn’t have much impact on the market and yesterday they were heading for the highs of this year again.

MAs Keeping BITCOIN Supported

Bitcoin continues to be supported by moving averages, despite the uptrend losing its pace. The 20 SMA (gray) was providing support when the pace was very strong, then the 50 SMA (yellow) held as support for some time and this week the 100 SMA (green) came into play. The price bounced off that moving average and BTC is trading above $28,000 again.

BTC/USD – 240 minute chart

The Support Held in ETHEREUM 

Ethereum experienced some bullish momentum as it pushed above moving averages, which later turned into support on the H4 chart. The 50 SMA (yellow) became support that prevented ETH/USD from dropping too low, but eventually it fell below the 100 SMA (green) yesterday, although the support zone around $1,700 held initially.

ETH/USD – 240 minute chart   
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