Forex Signals Brief October 4: Can ADP Impress After Higher JOLTS Jobs?
Yesterday’s Market Wrap
Yesterday started with the Reserve Bank of Australia meeting, which didn’t produce any further hikes as widely anticipated. Although they did sound hawkish, which was a reason that the AUD held up a bit better than other major currencies against the USD, which continued to make advances, following a strong JOLTS jobs report.
JOLTS jobs for August jumped to 9.61 million, up from the predicted 8.800 million. This study will do little to help the bond market and the US dollar which kept rising across the board as evidence keeps mounting that the US labor market is doing fine.
Later on, the Japanese Finance Ministry was held to account for a flash crash in USD/JPY after this pair reached 150.00 and it continued to increase to 150.16 after the JOLTS report. That’s when Japanese officials unleashed their fury, resulting in a swift decrease to 147.30s. But the price rebounded quickly as the market now believes it has seen the MOF’s hand, so this pair reversed back up to 149.33.
Today’s Market Expectations
Today started with the Reserve Bank of New Zealand rate meeting, which was widely expected to follow yesterday’s RBA scenario. The RBNZ is likely to maintain the Official Cash Rate at 5.50%. As stated in the most recent policy statement, the central bank is optimistic that with current interest rates, inflation will return to goal, and it is prepared to see some strength in the data in the near term.
The ADP employment report from the United States will be released later. The consensus predicts that 160K jobs will be added in September, down from 177K the previous month. Although we might get another positive surprise after yesterday’s jump in JOLTS job openings. The US ISM Services PMI is predicted to fall to 53.6 from 54.5 previously. The latest S&P Global US Services PMI fell short of forecasts, but the index remained in growth territory. Again, the remarks indicated dwindling demand and activity.
Forex Signals Update
Yesterday the volatility continued, with the USD progressing further to the upside, before the USD/JPY crash came. We opened several yrading signals, although only three closed, two long term gold signals and a EUR/GBP forex signal, all of which hit the take profit targets.
GOLD Getting Closer to $1,800
Gold continues to show no signs of life as it keeps making massive losses day after day. The chart shows strong bearish momentum in XAU/USD. Gold broke below the 200 SMA (purple), which rejected the price twice in about a month and has already seen two bounces off of it, but the price has continued to return to it, signaling that the 200 SMA has now been broken. As the slump persisted, the price fell below $1,820 yesterday.
XAU/USD – Daily chart
- Gold Sell Signal
- Entry Price: $1,840
- Stop Loss: $1,860
- Take Profit: $1,805
EUR/USD Falling Below 1.0450
EUR/USD has been bearish since July and it seems like the decline is picking up momentum, as this pair continues to make new lows. Late last week we saw a reverse higher above 1.06, but the 50 SMA (yellow) acted as resistance, refusing the price and yesterday we saw a 100 pips tumble as USD buyers returned, sending this pair below 1.05.
EUR/USD – 240 minute chart
- EUR/USD Sell Signal
- Entry Price: 1.0550
- Stop Loss: 1.06
- Take Profit: 1.0480
Cryptocurrency Update
Booking Profit During the Surge in BITCOIN
On Sunday, we saw another rebound in the cryptomarket, as the digital coins market has been in a mood swing over the previous few weeks, with Bitocin making a nice recovery after plummeting below $25,000 in September. Buyers failed to break over the 200 SMA, and we observed a bearish candlestick yesterday following a doji last, which is a bearish reversal indication. The price had been falling for a week, but inn the last two days there was a strong rally that brought it to $28,555. Although the 200 SMA (purple) acted as resistance again, rejecting the price initially, so let’s see if buyers will be able to push above this MA.
BTC/USD – Daily chart
- BTC Buy Signal
- Entry Price: $26,248.2
- Stop Loss: $24,500
- Take Profit: $28,000
ETHEREUM Fwiling at the 100 SMA
Lte last month, the price of Ethereum started increasing from the support, showing that there was a degree of purchasing interest and demand for Ethereum at roughly $1,600. Buyers have entered the region above this level on multiple times, but the 100 SMA (green) has been functioning as resistance on the daily chart. After Subnday’s surge we saw a reversal at thismomving average and yesterday erased all of Sundy’s gains.
ETH/USD – Daily chart
- ETH Buy Signal
- Entry Price: $1,671.79
- Stop Loss: $1,371
- Take Profit: $1,971
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