Forex Signals Brief for April 26: Inflation Continues the Slowing Trend in Australia
Yesterday risk assets dived lower as banking crisis jitters returned, while today the Australian inflation showed another decline
Yesterday’s Market Wrap
Yesterday we saw a sudden shift in risk aversion as the banking crisis jitters came back, with shares of First Republic Bank diving more than 40%. They slipped down to $7.10, or 44.4%, to $8.90. They closed at $16 yesterday ahead of earnings but deposit outflows were worse than anticipated and it’s looking like a failing bank. It announced that it’s putting up around $100 billion in assets for sale, but that didn’t improve the sentiment.
The US April consumer confidence missed expectations, coming at 101.3 points vs 104.0 expected, although the USD continued to rally higher against most major currencies as safe havens found demand on risk aversion trading. The JPY was the strongest of the pack, while risk assets got battered, especially US stocks.
Today’s Market Expectations
Today started with the main event for the day, which is the consumer inflation report from Australia. The headline CPI (consumer price index) slowed down further toward 6%, which is another eeason for the AUD to remain weak. The German GfK Consumer Climate indicator saw little change this month, while later in the US session we have the durable goods orders. Headline orders are expected to turn positive and show a 0.7%n in March, but core orders are expected to remain negative at -0.2%.
Forex Signals Update
Last week the USD started strong on the first day, while this week the Buck ended up lower on the first day. The sentiment was slightly positive and most risk assets pushed higher, which caught us on the wrong side with two losing signals, while four more signals remained open.
GOLD Made A U-Turn Yesterday
Gold retrested the lows yesterday during the European session as the price fell to $1,976 after slipping below $2,000. But, buyers came back as the sentiment turned negative and they pushed the price more than $25 higher above $2,000, but the 200 SMA (purple) remained as resistance.
XAU/USD – 60 minute chart
Booking Profit in USD/JPY Yesterday
USD/JPY has been bullish since the last week of March, as the sentiment turned positive with the banking crisis fading away. But it seems like the crisis might return and safe haven came back, so USD/JPY dived lower yesterday and our sell forex signal here closed in profit. Although the 100 SMA is still holding as support.
US Crude Oil – 240 minute chart
Cryptocurrency Update
Is BITCOIN Starting the Reversal?
Recently, the value of Bitcoin and other cryptocurrencies has been decreasing, which is known as a retreat or a downward trend. Specifically, the BTC/USD rate has fallen below $30,000, and even reached a low of $27,000 yesterday. However, it’s worth noting that the 50-day Simple Moving Average (SMA) line, which is represented by a yellow line on some price charts, has been providing support for Bitcoin’s price, meaning that it has not fallen below this level yet. As a result, we will have to wait and see if the price of Bitcoin will rise again and potentially enter into a bullish reversal from here.
BTC/USD – Daily chart
ETHEREUM Holding Above $1,800
Last week, Ethereum experienced a steep decline after some decent buying momentum in the previous week and which sent it 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. The retreat sent the price below $1,900 but the 50 daily SMA held as support right at $1,800 and we opened a buy Ethereum signal which is looking good now.
ETH/USD – 240 minute chart
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