Forex Signals Brief for April 20: Will the Philly FED Manufacturing Jump Up Too?
On Monday the Empire State Manufacturing index jumped higher suddenly, so today markets are focused on the Philly FED manufacturing
Yeterday’s Market Wrap
During the European session yesterday we saw an advance in the USD, while other currencies retreated. The UK inflation numbers were higher than expected, remaining above 10%, which led to an increase in the terminal rate projection by the Bank of England. Deutsche Bank now predicts two more rate hikes that would take the terminal rate to 4.75% by June. GBP/USD initially jumped on the numbers but later reversed and hit new session lows at 1.23914 during the US session.
In the US trading session, the US dollar initially started off as the strongest currency among its major counterparts, but later lost some of its strength when US markets opened. The USD declined against most major currencies, except for the CAD which followed crude Oil lower, despite a large drawdown in EIA inventories. At the end of the day, the GBP ended up being the strongest of all major currencies, while the JPY was the weakest.
Today’s Market Expectations
Early this morning we had the consumer inflation report from New Zealand. The headline CPI (consumer price index) showed a small tick higher for Q1. The RBA governor Lowe gave a speech, but his comments were sort of mild. Later on we have the Unemployment Claims from the US, although most traders are looking at the Philly Fed Manufacturing Index after the sudden jump in the Empire State Manufacturing Index on Monday.
Forex Signals Update
Yesterday the volatility was not high, with most trading assets jumping up during the European session and then down during the US session. We opened six trading signals, with three of them reaching the take profit targets, while the other three remained open.
GOLD Making Lower Highs
Gold finally broke and held above the $2,000 level last week due to weaker economic numbers from the US. But it seems like buyers can’t hold the gains above there as this week Gold fell below $2,000 again. We opened a sell Gold signal during the decline which closed in profit yesterday.
XAU/USD – 60 minute chart
MAs Starting to Turn Into Resistande Ror [[EUR/USD]]
EUR/USD continues to remain onan uptrend technically, as MAs are keeping it supported. But, the bullish momentum is fading as the price falls to 1.09, more than 150 lower from the top. We saw a bounce off the 100 SMA (green) yesterday in the USD session after the decline but the 20 SMA turned into support, which is another bearish sign.
EUR/USD – 240 minute chart
Cryptocurrency Update
BITCOIN Returns to $29,000 Again
Bitcoin retreated below $30,000 on Monday, falling to $29,170 as cryptocurrencies slipped lower, They have been bullish for more than three months and continue to display buying momentum, after the jump yesterday. BTC found support at the 100 SMA (green) and jumped back above $30,000. But another decline followed and sellers aretesting the 100 SMA again.
BTC/USD – 240 minute chart
Buying ETHEREUM At the 100 SMA
Last week, Ethereum experienced some decent buying momentum and surged above the $2,000 level. This came after a period of consolidation the week before. Our buy signal for ETH/USD hit the take profit target as it moved above $2,100. We opened another buy signal yesterday after the retreat to the 100 SMA which held at first.
ETH/USD – 240 minute chart
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