Forex Signals Brief June 20: Another Quiet Day in the Forex Market
Yesterday market were pretty quiet with US closed for bank holiday, while today the economic calendar is pretty light again
Yesterday’s Market Wrap
Yesterday markets were pretty quiet as the US markets were closed for Bank Holiday. Although there was a slight tilt toward the USD which was the continuation of the price action from the last part of the day on Friday. The prevailing sentiment of the day was characterized by mild risk aversion, primarily due to the absence of an anticipated stimulus package from China, which was rumored to be announced over the weekend.
Besides that, concerns about increasing yields and the possibility of substantial rebalancing flows at the end of the quarter were also mentioned as contributing factors. The impact of these factors was primarily observed in Asian and early European markets, although not exclusively.
Today’s Market Expectations
Today started with the Monetary Policy Meeting Minutes from the Reserve Bank of Australia, followed by speeches from the RBA Deputy Gov Bullock and the Assist Gov Kent. This comes after the surprise rate hike, so the comments were hawkish as well. A while ago the German PPI producer inflation report showed a decline, which will send consumer inflation lower. In the US session, we have the Housing Starts and Building Permits which are expected to remain around the same levels.
Forex Signals Update
Yesterday the price action was pretty slow with US markets closed for bank holiday, so we only had two trading signals which closed, both of them in profit. We were long on AUD/USD and short on Gold, both hit the take profit targets, so we had a positive day after all.
GOLD Heads for the Bottom of the Range
Gold has been trading in a range between two moving averages for more than a month, although we saw a break of the 100 SMA (green) which has been acting as support on Thursday morning. That came after the FOMC meeting last Wednesday, although the breakout eventually turned out to be false as the price returned back above the bottom moving average. As a result, Gold continued the range-bound trading and headed for the 50 SMA (yellow) at the top, which has been acting as resistance.
XAU/USD – Daily chart
Remaining Long on AUD/USD
AUD/USD turned bullish at the end of May and buyers have been in total control since then, with the USD retreating while the AUD has been one of the strongest currencies. The 20 SMA (gray) has been keeping the trend bullish although we saw a retreat below this moving average yesterday during the retreat, which we used to open a buy forex signal.
AUD/USD – Daily chart
Cryptocurrency Update
BITCOIN Testing the 50 SMA
Bitcoin has been on a bearish phase that began in April, with prices consistently making lower lows after a bullish period in the first quarter. During this bearish phase, the price of Bitcoin dropped to a level that triggered the stop loss target of a “buy BTC” signal. However, Bitcoin quickly reversed its downward movement and started trading above $26,000 again. It’s worth noting that during this upward move, Bitcoin encountered resistance at the 50-day Simple Moving Average (SMA), represented by the yellow line on the chart. The 50-day SMA is often used by traders and investors as a technical indicator to assess the average price of an asset over the past 50 trading days.
Currently, the situation remains uncertain as Bitcoin failed to surpass the 50-day SMA. The next course of action will depend on whether Bitcoin can successfully push above this moving average. Traders and investors will closely monitor the price action and market trends to gauge Bitcoin’s strength and potential for further upward movement.
BTC/USD – Daily chart
ETHEREUM Hesitating to Move Higher
ETHEREUM made a break of the resistance and support area above $1,700 as the price fell below $1,630s, but the 200 SMA (purple) was waiting there, which stopped the decline. This moving average acted as support on the daily chart, and the price formed a doji candlestick above it, which is a bullish reversing signal, followed by a nice bullish candlestick on Friday. We decided to open a buy Ethereum signal but the price has been trading in a tight range in the last several days.
ETH/USD – Daily chart
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