Forex Signals Brief August 9: Canada Employment Data Closing the Week

Today’s Market Expectations

Today the economic calendar ends with the employment report from Canada, but before that we have the inflation report from China for June. The CPI (Consumer Price Index) is expected to tick higher to 0.3% last month, while the PPI (Producer Price Index) is expected to fall further, from -0.8%  to -0.9%.

The Canadian Labour Market report is expected to show an increase of 25K new jobs in July, improving from the previous month’s decline of -1.4K, with the unemployment rate anticipated to remain steady at 6.4%. It’s worth noting that the Bank of Canada recently cut interest rates to 4.50% and indicated that further rate reductions are likely. The market is currently pricing in 80 basis points of easing by the end of the year.

Yesterday the sentiment improved in financial markets, with stock markets and cryptocurrencies making some decent gains. We remained long on risk assets, nd had another great day, with with closed trades, seven of which were winning forex signals, and just one losing signal.

Gold Climbs Above $2,400 Again As the Pullbacks Ends

Early this week, gold saw a decline, reaching $2,364.34 by Monday morning. However, there was a positive turn yesterday, with gold (XAU) climbing above $2,400. Despite this upward movement, buyers faced strong resistance at the 200 SMA, which caused a rejection. As risk appetite weakened later in the US session, gold reversed its gains and closed the day at $2,380.

XAU/USD – Daily chart

EUR/USD Bounces Off the 100 SMA

The USD experienced a sharp rise following the release of the latest weekly unemployment claims report, which showed a decrease. This strengthened the dollar and pushed EUR/USD below 1.09. The pair dropped from 1.0930 to 1.0900, breaking below the 20 SMA (gray) on the H4 chart, which had been acting as support. However, the 100 SMA (green) provided a new support level, and EUR/USD rebounded from this point.

EUR/USD – H4 Chart

Cryptocurrency Update

Bitcoin Finds Support at the 50 Weekly SMA

BTC/USD – Daily chart

The 200 SMA Holds As Support for Ethereum 

Meanwhile, Ethereum has been trading at lower highs since early March, pointing to a potential downturn, which materialized in August. Ethereum’s price peaked at $3,830 before falling below $3,000 in June. When buyers re-entered the market, the price managed to rise above the 50-day SMA, which had previously been a resistance level. However, with the recent acceleration in selling pressure over the past few days, Ethereum has seen another bearish reversal, dropping below the 200 SMA and continuing the trend of lower highs. The price fell to $2,000 yesterday before recovering to $2,400.

ETH/USD – Daily chart