Yesterday’s Market WrapAfter the US ISM manufacturing figures which were released yesterday and with the jobs report on the schedule to be released in
Yesterday’s Market Wrap
After the US ISM manufacturing figures which were released yesterday and with the jobs report on the schedule to be released in the US session, the USD is back on the bullish trend again as we move from August to September. Stock markets and bonds were sold off yesterday and that was also helping to keep the USD in control.
On the European news front manufacturing figures remained pretty much the same for August, but China started locking down yet another city, its largest one since Shanghai at the start of the year. But as we continue to count down to the next FED meeting in the bigger picture, the dollar continues to maintain its allure while risk trades are looking rather soft again towards the end of the week. The US ISM manufacturing numbers showed a stable sector, which increased the odds of another 75 bps rate hike from the FED in the next meeting.
The Data Agenda Today
Today the PPI (producer price index) numbers which will be released soon, are expected to show an increase in the European producer inflation once again, which will translate to higher consumer prices in the coming months. Although the biggest event today is the employment report from the US. Employment change is expected to slow down to around 300K after the jump above 500K last month, although strong numbers would support another strong hike from the FED, which would send the USD higher.
Yesterday the volatility increased again as the USD buyers pushed the Buck higher, especially after the US ISM manufacturing report. We opened many trading signals, in Oil, Gold, as well as forex. We were caught up during retraces higher a couple of times, which were pretty huge, but closed the day with four winning signals after all, so it was yet another good day.
Continuing to Sell GOLD
Gold continues to remain quite bearish, as odds of another 0.75% interest rate hike from the FED keep increasing, and comments from FED members point to that. Yesterday we opened three Gold signals, two of which closed in profit as the downtrend continued, while we got caught on a retrace higher with the other Gold signal.
XAU/USD – 15 minute chart
Keeping Short on WTI Oil
Crude Oil has turned really bearish this week, losing more than $10, with the 20 SMA (green) acting as resistance at the top, showing that the selling pressure is quite strong. Yesterday we decided to open two sell signals in US WTI crude Oil, one of which closed in profit while the other hit SL.
US Crude Oil – 60 minute chart
Cryptocurrency Update
Cryptocurrencies continue to display uncertainty this week, after the two bearish moves we saw in the last two weekends, which sent bitcoin below $20,000. BTC continues to trade above and below that level, which means that there’s no direction at the moment, so the crypto market is waiting for a major event to get them going.
Ethereum Trying to Resume the Uptrend
Ethereum was one of the most bullish crypto coins during the bullish period until July and was finding support at moving averages on the H4 chart, as it was moving higher again earlier in August. But the bearish momentum in the crypto market has sent ETH/USD below these moving averages. Although the 20 SMA (gray) is providing support for Ethereum, so it looks like buyers will push above these MAs soon.
ETH/USD – H4 chart
MAs Still Keeping BITCOIN Bearish
Bitcoin broke below the ascending channel that it was trading in for around two months in the middle of July and since then it remains pretty soft. Moving averages continue to provide resistance at the top, particularly the 50 SMA (yellow) and the price keeps returning below $20,000, so the situation is not looking really good.
BTC/USD – 240 minute chart
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