Yesterday’s Market Wrap
Yesterday the USD started on the backfoot on thin liquidity, with US markets on bank holiday, while risk assets were progressing higher. Although that ame to an end and this month’s theme resumed again, as the USD tried to resume the bullish momentum. Markets have been waiting for more proof that the US economy is rebounding after a slowdown in Q4 of last year and the data is not disappointing.
Yesterday the PMI services jumped above 50 points for February, confirming the jump in ISM services earlier this month. Other US economic data has shown optimism, although the existing home sales missed expetations. Nonetheless, that was enought for the sentiment to turn negative for risk asssets and the USD started to turn bullish.
Today’s Market Expectations
Today markets will wait for the FOMC minutes from the last meeting, to see where the FED stands in regards to interst rates. Although we have seen more proof of an economic rebound since then, so the minutes might be a bit outdated. The day startyed with the Wage Price Index from Australia whivh was expectyed to remin unchanged at 1% in Q4. The Rezerve Bank of New Zealand was next, which delivered another 0.50% rate hike, although the NZD was not too impressed. the German ifo Business Climate posted a slight improvement for this month.
Yesterday the volatility picked up a little after two very quiet days although it remained low. We opened several trading signals, while come other trades we carried on from previous days. We closed seven trades in total, with five signals reaching the take profit targets.
Selling GOLD at the 50 SMA
Gold fell to $1,816 early last week, but it retreated higher closer to $1,850 by the end of the week. Although, once again, buyers were unable to push the price above the 50 SMA (yellow) on the H4 chart, which has turned into a solid resistance indicator now and the economic data is showing a decent rebound in the US economy which is helping the USD, as markets reprice a higher terminal rate from the FED. We remain short on Gold.
XAU/USD – 240 minute chart
Booking Profit on EUR/USD Signals
EUR/USD was bullish for several months and pushed above 1.10, but it turned bearish after failing to hold gains up there. The highs are getting lower and moving averages acting as resistance on the H4 chart. Yesterday we opened two sell EUR/USD signals after thr failure at the 50 SMA.
EUR/USD – 240 minute chart
Cryptocurrency Update
It seems like cryptocurrencies are in another consolidating period after resuming the bullish momentum last week. The bullish run in January was a strong signal that the bearish period might be over, and now after last week’s surge, cryptos are looking increasingly bullish. But, we are seeing a consolidation before the next assault higher.
BITCOIN Unable to Hold Above $25,000
Bitcoin resumed the uptrend last week and pushed above $25,000 but it seems liek that level might be a bit too much. Buyers have failed three times to hold gains above it and BTC ghas retreated below it. But, we’re still within the range so let’s see if the buying momentum eill pcik up again.
BTC/USD – 240 minute chart
MAs Turning Into Support for ETHEREUM
Ethereum is also looking bullish as moving aversges turn into support. It was displaying buying pressure for most of January as the lows kept getting higher. But last week buyers gave up and sellers took over, pushing the price below $1,500. Although the 200 SMA turned into support on the daily chart and now the price bounced back up.
ETH/USD – 240 minute chart
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