Forex Signals Brief September 28: Mind the European CPI ahead of US Data
Skerdian Meta • 3 min read
Yesterday’s Market Wrap
Yesterday markets remained slow as the economic data was pretty light during the first two trading sessions, although even after the release of the US durable goods orders which posted a positive surprise for August, markets failed to gain momentum. However, the demand for the USD remained stable and the dollar progressed higher across the board, with the Euro and the GBP being the weakest among major currencies.
Crude Oil continued the surge after Tuesday’s reversal and it rose $3.34, or 3.7%, to $93.80. The high price of $94.17 would put it beyond the 50% midpoint of the move down from the high of June 2022 at $93.78, before spinning downward into the close. Spot Gold tumbled around $25.24 lower to $1875.19. That is the lowest level since March 2023.
Durable Goods Orders in the United States turned positive this time, increasing by 0.2%, or $0.5 billion, to $284.7 billion in August, according to the US Census Bureau on Wednesday. This data follows a 5.6% drop (updated from 5.2%) in July and was better than the market’s projection of a 0.5% drop, while non-defense capital orders posted a decent 0.9% jump last month. That helped the USD further, together with FED’s Kashkari’s comments, saying that the data will tell the Fed if more hikes are needed and he expects FED to hold rates steady next year.
Today’s Market Expectations
Forex Signals Update
Yesterday the price action continued to remain slow, but once again it remained consistent with the USD grinding higher. We’re still keeping the strategy of being bullish on the USD is proving pretty great as winning trades keep accumulating. We opened five trading signals, with four of them closing in profit while one remains open today.
GOLD Tumbles Below August Lows
Gold was finding support on the daily chart around the 200 SMA (purple), which rejected the price twice in roughly a month, and we have already seen two bounces off of it, but the price keeps returning to this moving average, which is a negative indication. The 200 SMA has now been breached. Given that gold is continuing to make lower highs, it failed last week at the 100 SMA (green) and reversed downward. This was the third successful effort to breach the 200 SMA, and Gold is now back below $1,900.
XAU/USD – Daily chart
- Gold Sell Signal
- Entry Price: $1,900
- Stop Loss: $1,915
- Take Profit: $1,980
Looking to Buy USD/JPY
Since early September, EUR/GBP has been bullish, rising above 0.8520 and reaching the 0.8705 level on Friday, which it retested early this week following a fall lower to the 20 SMA (gray) on the H4 chart. We purchased the dip, and the price rose again, maintaining the bullish momentum after briefly falling below the 20 SMA.
We performed the same thing yesterday, opening a buy EUR/GBP signal at the 50 SMA (yellow). Although the Euro (EUR) had its strongest trading week against the Pound Sterling (GBP) since early February, the new high this week was only a pip higher than the previous week’s high.
BITCOIN Buyers Starting to Come Back?
BTC/USD – Daily chart
We are looking to open another buy Bitcoin signal yesterday after the pullback, going in long just above the 20 SMA on the daily chart above.
ETHEREUM Returning Below $1,600
The price of Ethereum jumped higher last month indicating that there was a level of buying interest and demand for Ethereum at the sone around $1,600. Buyers have stepped in on several occasions at the area above this level but the 20 SMA (gray) has been acting as resistance on the daily chart. However this week buyers had another go at this moving average and pushed the price above it for some time, but it has retreated back below $1,600 now.
ETH/USD – Daily chart
- ETH Buy Signal
- Entry Price: $1,671.79
- Stop Loss: $1,371
- Take Profit: $1,971