Forex Signals Brief May 15: Will the USD Continue Last Week’s Reversal?

Last week we saw some bullish signs form the USD, which gained around 200 pips, so we will see if it can continue to gain this week

Skerdian Meta•Monday, May 15, 2023•3 min read

Last Week’s Market Wrap

Last week started quiet, with the economic calendar being light in the first two days, while traders were waiting for the US inflation report to be released on Wednesday. The CPI (consumer price index) showed a slight delince in both headline and core numbers on a yearly basis, but the March number came high at 0.4%.

That sent the USD lower initially but then the bullish reversal came and the buck closed the week on a bullish foot. Producer inflation PPI also showed an increase in April, while consumer sentiment softened on Friday. The sentiment turned negative for risk assets, which kept commodity dollars bearish in the last two days. The GBP couldn’t benefit from the Bank of England rate hike on Thursday, and the decline in March GDP weighed further on GBP/USD.

This Week’s Market Expectations

This week there is economic data, although nothin on the schedule to change the sentiment in financial markets. Today we have the US Empire State Manufacturing Index whichis expected to turn negative, as well as the German ZEW Economic Sentiment. Eurozone Flash GDP is expected to show a 0.4% increase in Q1 on Wednesday. Inflation is expected to show a slowdown in Canada as well while US retail sales are expected to turn positive in April.

Forex Signals Update

This week was slow during the first half, with the USD being on a slight retreat, which was easy to read and trade. We had many winning trading signals during the first two days, but then the volatility increased after the US inflation report on Wednesday. In the end, we opened 24 forex signals, 15 of which reached the take profit target while 9 closed in a loss.

GOLD Keeps Returning to $2,000 Which Is Not A Good Sign

Last week, the USD turned bullsibh in the last two days, but Gold was holding better than other assets. The price reversed back to $2,000 last week and ended the last trading session in a similar fashion to the previous week, although the price held above this level with the 20 SMA (gray) still acting as support on the daily chart.

XAU/USD – Daily chart

EUR/USD heading for the 100 SMA

EUR/USD has been on a bullish trend, with different moving averages providing support, including the 100 Simple Moving Average (SMA) depicted by the green line on the daily chart. Although the bullish momentum has been losing strength, and last week we saw a reversal. Although the price is still above the 100 SMA, so we will see if this moving average can hodl as support.

EUR/USD – Daily chart

Cryptocurrency Update

The 100 SMA Holds for BITCOIN But There’s No Bounce

Bitcoin has experienced a decline in the last two weeks, although it has been losing strength since mid-April, after briefly reaching a new high above $31,000. During this period, the 50-day Simple Moving Average (SMA), represented by the yellow line on the daily chart, has been acting as a support level, preventing further downward movement and pushing the price lows higher. However, despite the support from the 50 SMA, the highs of Bitcoin were gradually decreasing. Last week, we witnessed a break below the 50 SMA, which has now transformed from a support level to a resistance level. Although the 100 SMA (green) held as support, but there was no buonce.

BTC/USD – Daily chart

ETHEREUM Slipping tothe 100 SMA

The buying pressure has slowed in recent weeks and we have seen a retreat in Ethereum in the last several days. But, the correction looks almost complete as the btc/usd50 SMA (yellow) holds as support while the stochastic indicator is oversold already. So, we decided to open a buy ETH signal a while ago.

ETH/USD – Daily chart

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ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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