Yesterday’s market wrap
Yesterday’s Fed meeting minutes were the main event and markets were expecting to see hawkish comments. This would mean a slower pace of rate hikes, which would be a bearish thing for the USD. But, the Fed minutes were not overtly dovish even though many traders expected the FED to pour out hawkish warnings and there were none, so this was seen as dovish, sending the assets at risk lower and the USD higher.
Retail sales have reinforced the idea that the American consumer is at least fit. Earlier in the day, the Reserve Bank of New Zealand raised interest rates by 50 basis points to 3.00%, but the NZD ended up falling after a short-lived spike. UK inflation hit a new all-time high as the CPI (consumer price index) rose to 10.1%, while eurozone Q2 GDP was revised by one point down to 0.6%.
The data agenda today
Today started with Australia’s employment rate early this morning and Switzerland’s trade balance. The final CPI (consumer price index) for the euro zone remained unchanged at 8.9%. Later in the US session, we will have a number of economic data from the US, starting with the Philly Fed Manufacturing Index, jobless claims and existing home sales, which will shed more light on the US economy.
Yesterday we continued to trade crude oil and cryptocurrencies as the volatility of these financial assets continued, while also having forex signals. Most of the signals were successful yesterday, except for the Gold signal, which closed in a loss even though we guessed the right direction.
GOLD – Sell signal
We have been buying and selling Gold as the price has moved, although yesterday we decided to open a Gold sell signal as the trend turned bearish this week and the 20 SMA ( gray) was offering resistance on the H1 chart. The downtrend continued for gold, but before that there was a jump that triggered our SL level.
Gold XAU – 60 Minute Chart
staying short on WTI Oil
We saw jumps in Crude Oil, but the main trend remains bearish, so we sold Oil during the retracements. Yesterday we saw a jump after the sharp drop in US crude oil inventories, but we decided to sell that jump and the oil signal closed in profit.
WTI Oil – H1 Chart
Cryptocurrencies remained bullish over the past week as they continued to push higher highs. Ethereum surged above $2,000 while Bitcoin surged above $25,000. In recent days we have seen a small pullback, but it seems small and we are about to buy cryptocurrencies again,
Purchase Bitcoin at 50 SMA
Bitcoin turned bullish again last week, resuming the uptrend after the previous week’s pullback and the support provided by the 20 SMA (grey). We opened a BTC buy signal which closed in profit when the price broke above $25,000, although the 100 SMA (green) acted as resistance on the daily chart. We decided to open another buy trade after yesterday’s retreat at the 50 SMA (yellow) on the H4 chart, which was functioning as support.
BTC/USD chart – H4
Buy the Retrace in ETHERUM
Ethereum remains one of the most bullish cryptocurrencies, despite the occasional pullback on the downside. Ethereum bulls pushed the price above $2,000 last week, although we saw some pullback over the weekend. We are following the price action to see where we can buy this digital coin, either at the 50 SMA (yellow) or the 100 SMA (green).
ETH/USD – 240 minute chart