Yesterday’s Market WrapLast week the sentiment turned positive as the banking problems got under control and risk assets moved higher on a steady tren
Yesterday’s Market Wrap
Last week the sentiment turned positive as the banking problems got under control and risk assets moved higher on a steady trend while the USD slipped lower. Although we saw a reversal on Friday as risk sentiment turned negative, which continued in the first hours of yesterday morning when markets opened, after Oil producing countries announced a cut in the output. That might hurt the global economy, which is already fragile.
But then the sentiment turned positive again and the USD lost all the gains it made on Friday, falling more than one cent, while risk assets resumed the bullish trend from last week. The US ISM manufacturing report showed a further slowdown in the activity which was already in contraction for four months, while ISM prices also declined. This further confirms the idea that inflation is cooling off globally, with headline CPI slowing to 0.2% in Switzerland in March, against 0.7% in February.
Today’s Market Expectations
Today started with a major event, as the Reserve Bank of Australia held its meeting for March, with expectations balanced between stalling and hiking rates by 25 basis points (bps) which would be the last one for now. They did raise rates by 25 bps, although the AUD had already made its rally yesterday, and the dovish hike didn’t impress traders too much. Later in the afternoon we have the JOLTS job openings which are expected to slow to 10.49 million in March.
Yesterday the volatility picked up again and we saw a reversal early in the Asian session as the sentiment improved. We opened four trading signals in total, two Gold signals and two forex signals, ending up with two winning and two losing signals, although one of our winning signals was a long term trade, which tilted the balance in our profit at the end of the day.
GOLD Bouncing Off the 100 SMA
XAU/USD – 240 minute chart
EUR/USD Failing to Hold Above 1.09
EUR/USD – 240 minute chart
Cryptocurrency Update
BITCOIN Sticks to MAs
Bitcoin made new highs last week as buyers pushed the price above $29,000, although they missed to reach our take profit target below $30,000. The price continues to be supported by moving averages during pullbacks lower and the lows are getting higher, so the next target will be $30,000 soon.
BTC/USD – 240 minute chart
ETHEREUM Trades Around $1,800
ETH/USD – 240 minute chart
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