Forex Signals Brief December 28: Jobless Claims to Keep Within Range
Yesterday the volatility picked up as traders put their last positions before the New Year’sclose. In Gold the price action was decent once again, as it surged around $30 higher, breaking above the previous all-time high of $2,075. The upside momentum has picked up further in Gold during the Holiday season and moving averages are not able to catch up.
Crude Oil was also volatile, increasing to $76 early in the day on Red Sea turbulence, while in forex, the most notable thing was the USD weakness, which prevailed once again. EUR/USD climbed around 100 pips higher, reaching 1.11, while USD/JPY tumbled to 141.60. However, the commodity dollars didn’t really take advantage of the softer USD, which is a bearish sign.
In terms of economic data, we had a couple of releases with the Housing Starts from Japan, showing a –8.5 % contraction, while the Richmond Manufacturing Index fell deeper into negative territory at -11 points.
Today’s Market Expectations
Today we have some economic data on the schedule, with the Prelim Industrial Production expected to decline by -1.7% MoM while the Retail Sales are expected to show a 5.1% increase YoY during the Asian session. Crude Oil Inventories will be released later in the day, although there are no expectations after the 2.9 million barrel increase in the previous week.
Later in the US session, we have the Unemployment Claims which are the highlight of the day. Last month they came at 205K, beating expectations, while this month they are expected to show a slight pickup at 211K, although that’s still within the range. The Goods Trade Balance is expected to improve slightly at -88.6 billion, while the Pending Home Sales are expected to turn positive and come and show a 0.8% increase.
BTC/USD has been one of the top-performing assets this year, however, it is currently in a consolidation phase following a 160% increase. Despite adverse economic conditions, the value of Bitcoin has soared above $44 and is expected to outperform traditional investments. It began at $40,000 earlier this month, but buyers have been very active, maintaining the price optimistic overall. However yesterday we saw a decent pullback, but yesterday buyers returned again.
BTC/USD – Daily Chart
ETHEREUM Bounces Off the 50 Daily SMA
Following severe losses in the first two quarters of 2023 as it dropped from near $5,000, Ethereum has been attaining bigger highs, demonstrating that the trend has been positive for more than a year. For the most part, Ethereum has been consolidating between $1,100 and $1,400 this month, but it appears that the positive trend will resume, driving this pair higher as Ethereum prepares for the next upgrade. This week has seen a decline, although the 200 SMA appears to be holding as support.
Ethereum – Daily Chart
- ETH Buy Signal
- Entry Price: $1,947.38
- Stop Loss: $1,490
- Take Profit: $2,500
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