Forex Signals Brief for April 12: BOC Meeting and FED Minutes Today
Yesterday’s Market Wrap
The USD made a comeback on Friday after the positive NFP report that day, following a decline since the middle of March on weaker economic data from the US. The bullish momentum continued on Monday and the USD was up by around 150 pips in total, although yesterday the sentiment turned positive again and risk assets moved higher, while the USD tumbled back down, giving back most of the gains.
The inflation numbers form China showed a slowdown, with the PPI (producer price index) declining by 2.5% on an annualized basis, while the CPI (consumer price index) cooled off to 0.7% against 1.0% expected. The Eurozone Sentix Investor Confidence indicator remained negative, but showed an improvement this month, while expectations wee for a further deterioration.
Today’s Market Expectations
Today started with core machinery orders from Japan which showed a decline last month. Later in the US session, the US CPI report will be released, with the headline expected to slow to 5.2% in March from 6.0% previously. Although we will see if core inflation will fall too, or if it will remain elevated. The Bank of Canada policy meeting will follow, although they are expected to keep rates unchanged at 4.50%. The FOMC Meeting Minutes will be released in the evening, which will give a clearer picture of the FED decision in the last meeting.
Forex Signals Update
Yesterday the volatility picked up as the USD resumed the decline. Although we got caught on the wrong side with several trading signals, but closed a winning profit Bitcoin signal and a buy Gold signal, since XAU moved above $2,000 again.
GOLD Stuck Between 2 MAs
Gold pushed decisively above the $2,000 level last week, pushing the price to $2,033. But on Monday XAU/USD retreated below this major level again, indicating that buyers don’t feel too comfortable holding their long positions above this level. Although the 200 SMA (purple) held as support n the H1 char stand we saw a bounce above $2,000 yesterday, but the 100 SMA (green) turned into resistance.
XAU/USD – 240 minute chart
EUR/USD Returns Above $2,000 Again
EUR/USD has been bullish as the odds for the FED continuing to raise interest rates further fall and this forex pair approached the major level at 1.10 last week. Although buyers seem reluctant the closer we get to 1.10. The positive NFP report improved the sentiment for the USD and we saw a bearish reversal in risk assets last Friday. The decline continued on Monday and EUR/USD fell to 1.0830s but reversed higher yesterday and moved above 1.09 again.
EUR/USD – 60 minute chart
Cryptocurrency Update
Booking Profit on BITCOIN
It seems like the bullish momentum in cryptocurrencies continues as Bitcoin resumed the uptrend in the last two days after achieving new highs in March. The price stalled below $30,000 for some time but buyers come back and pushed BTC above this major level this week, hitting our take profit target for the buy Bitcoin signal.
BTC/USD – 240 minute chart
ETHEREUM Approaching $2,000
Ethereum broke above $1,900 yesterday after experiencing strong buying momentum again this week, following the consolidation in the previous week and our buy ETH/USD signal hit the take profit target as it pushed above $1,900. Moving averages have turned into support on the H4 chart with a decent support zone of around $1,830.
ETH/USD – 240 minute chart
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