Yesterday’s Market WrapYesterday’s speech from the RBA governor Lowe didn’t have much impact on the AUD, as traders were waiting for the European Cent
Yesterday’s Market Wrap
Yesterday’s speech from the RBA governor Lowe didn’t have much impact on the AUD, as traders were waiting for the European Central Bank (ECB) meeting. The ECB raised interest rates by 75 bps as expected, taking them to 1.25%, which was anticipated already, so there was not much reaction to the Euro. The reaction came after the comments from Christing Lagarde that there is not the norm, implying that the ECB might slow down in the next meetings. Although the decline in EUR/USD stopped and this pair continues to remain close to parity.
FED’s Jerome Powell was also speaking yesterday at the Cato Institute’s Annual Monetary Conference and he also added some fuel to the USD upside, saying that “we need to keep going until we get the job done”. Although, the comments from Lagarde kept the risk sentiment slightly positive, helping stock markets throughout the day.
The Data Agenda Today
Today started with the Chinese CPI (consumer price index) and PPI (producer price index) inflation reports, showing that the consumer inflation CPI still remains under control, while the producer inflation PPI declined instead. Today we also have the EU economic summit as well as a speech from Christine Lagarde, which might send the Euro down again if she repeats yesterday’s comments.
Yesterday we opened six forex signals, most of which in forex although we also tried a short signal in crude Oil. The volatility picked up in forex somewhat after a quiet day on Wednesday and most of the signals hit the target levels, particularly the trades which were long on the CHF.
Selling WTI Oil
Crude Oil crashed lower on Wednesday for no particular reason, especially when it should have gone up on news that the Iran nuclear deal was put in pause. US WTI crude fell from around $87.70s to $81 lows. We opened a sell Oil signal as it was declining and today we decided to have another go to the downside during the retrace higher, but buyers kept pushing higher and we lost that trade.
US Crude Oil – 60 minute chart
Giving EUR/USD A try at Parity
USD/CHF was on a bullish trend since late August, with moving averages acting as support at the bottom during pullbacks lower. This week though we are witnessing a trend reversal and the 20 SMA (gray) has turned into resistance at the top. My colleague Arslan opened a sell EUR/CHF signal below that, which closed in profit as the decline continued.
USD/CHF – 60 minute chart
Cryptocurrency Update
On Tuesday the crypto market went through another bearish move, which have been going on for some time now and Bitcoin broke below the support zone around $19,000. The decline stopped that day and on Wednesday we saw a reversal and an attempt to turn bullish but yesterday there was no continuation and most cryptocurrencies were quiet.
Can BITCOIN Push Above the 50 SMA?
Bitcoin broke the upside channel last month and it has entered a descending trend since the middle of August. Moving averages turned into resistance such as the 50 SMA (yellow. This week we saw another bearish move, which sent BTC even lower and now buyers are trying to push to the 50 SMA again, so let’s see if they will push above the 50 SMA this time.
BTC/USD – H4 chart
Ethereum Heading for the 200 SMA Again
Ethereum was showing decent buying pressure during most of the summer, but went through another decline last month, after briefly climbing above $2,000. The price fell below the 200 SMA (purple) which has turned into resistance at the top and yesterday we saw a decline after the last rejection. Although we closed the signal in profit before the reversal. The decline has stalled already and now Ethereum has reversed higher again, now heading for the 200 SMA (purple). if buyers can push the price above it, then Ethereum will be bullish.
ETH/USD – 240 minute chart
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