Yesterday’s Market WrapYesterday was one of those summer days, with the liquidity being thin and volatility being quite low. It was a quiet day overal
Yesterday’s Market Wrap
Yesterday was one of those summer days, with the liquidity being thin and volatility being quite low. It was a quiet day overall, with the economic calendar being pretty light, apart from the prelim unit labour costs for Q2, which remain pretty high. We saw some bullish momentum in crude Oil, as uncertainties regarding Iran’s exports and the closure of the southern Oil pipeline from Russia to eastern Europe was shut.
Most of the other markets were trading cautiously as we approach the US CPI (consumer price index) inflation report which will be released today. So, stock markets retreated slightly lower, while the major forex pairs traded in a tight range.
The Data Agenda Today
Today the economic calendar started with the inflation figures from China and Japan. While the PPI (producer price index) remains high, CPI inflation is still under control in that part of the world. Later we will have the big release of the US CPI inflation report, which is expected to show a small cool-off, which would be negative for the USD since it would mean a slower pace of rate hikes from the FED.
Yesterday the uncertainty continued ahead of the US CPI inflation measures and most assets kept making sudden reversals as traders position themselves. We opened six signals in total, closing the day with three winning and three losing signals, but two of the winning forex signals were long term trades which tipped the balance on the positive side.
USD/JPY – Buy Signal
USD/JPY has been extremely bullish since March this year although in the middle of July this pair started reversing lower and this pair retraced around 9 cents lower. But, the retreat ended early this month and USD/JPY has been bullish again since then. We opened a buy forex signal at the 50 SMA yesterday as it caught up with the price.
USD/JPY – 60 minute chart
WTI Oil – Sell Signals
Yesterday we opened two sell signals in crude Oil, since the main trend is still quite bearish and the global economy is heading into a recession. We keep opening sell Oil signals during retraces higher to moving averages. Yesterday we sold WTI Oil at the 100 SMA (green), booking profit at the 50 SMA (yellow), and repeated that trade as buyers were failing below the 200 SMA (purple)
WTI crude Oil – 60 minute chart
Cryptocurrency Update
Cryptocurrencies have been on a bullish trend for about two months, but yesterday we saw a sudden bearish reversal which sent Bitcoin (BTC) $1,600 lower, as it fell below $23,000. The reason for that was the US inflation report approaching, which sent risk assets such as tech stocks and cryptocurrencies a bit lower.
Buying the Retreat in ETHEREUM
Ethereum pushed above the major support and resistance level at $1,700, which was a strong bullish signal, besides the fact that this cryptocurrency doubled in price since the middle of June. But, yesterday we saw a pullback which was a good opportunity to go long, so we opened a buy Ethereum signal above the moving averages as the decline stalled.
ETH/USD – Daily chart
Buying [[THORChain]] Rune After the Break of the 100 SMA
THORChain went through a decent crash earlier this year, but in March we saw a decent bounce as well. Bu the bearish momentum resumed and RUNE coin fell to $2.40. Although it has been pushing higher and we decided to open a buy after the recent upgrades and the break of the 100 SMA.
RUNE/USD – Daily chart
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