Yesterday’s Market WrapYesterday there were many remarks from central bankers yesterday, including those from the European Central Bank’s Villeroy, de
Yesterday’s Market Wrap
Yesterday there were many remarks from central bankers yesterday, including those from the European Central Bank’s Villeroy, de Cos, and Kazaks. Lagarde stated that recent signs hint at more weakening for the eurozone economy in the third quarter, while Bank of Japan Governor Ueda and Deputy Governor Uchida both made headlines. Ueda and Uchida made statements geared at bolstering the JPY, stating that foreign exchange markets must be properly monitored. They were joined in their endeavor by Japanese Prime Minister Kishida but USD/JPY ignored their comments and continued to rise to 149.
Goolsbee of the FED also popped up saying “The next question will be, how long are we going to hold at these levels?” and answered that we appear to be holding rates at elevated levels for a longer period of time than the markets anticipated.
The flow of economic data was relatively modest. We did receive the September update for the German Ifo and Belgian business environment indicators, which still remain quite low. Rising rates drove equity indices down once more. Following a slight increase in Asia, US equities indices fell dramatically during the European morning while the USD benefited from all this and gained ground, particularly versus the EUR, GBP, and JPY.
Today’s Market Expectations
This week started quietly, with little direction in the Adian and early European sessions, but then the volatility picked up as risk sentiment turned negative, sending stock markets tumbling lower, while the USD resumed making gains across the board. We had several trading signals open from last week, with four of them reaching the targets. 3 forex signals which we were long on the USD closed in profit while the S&P signal closed in loss.
GOLD Retesting the 200 SMA
Gold has found sturdy support at the 200 SMA on the daily chart, despite the fact that the price keeps returning to this moving average, which has continuously rejected the price, and we have already seen two bounces off of it. Considering the fact that Gold continues to make lower highs, it failed at the 100 SMA (green) on Wednesday after the FOMC meeting. Gold returned to the 200 SMA and the price remains stuck to it.
XAU/USD – Daily chart
- Gold Sell Signal
- Entry Price: $1,928.68
- Stop Loss: $1,942.68
- Take Profit: $1,920.68
Booking Profit in EUR/USD
EUR/USD has slipped more than 6 cents lower since the top more than two months ago and there are no signs of stopping. Moving averages have turned into resistance indicators on the H4 chart, taking turns in sending the price lower and keeping the trend bearish. We remain bearish on this pair, selling retraces higher. We already had a sell EUR/USD signal from last week, which closed in profit yesterday as the price fell below 1.06.
Cryptocurrency Update
BITCOIN Buyers Starting to Come Back?
BTC/USD – Daily chart
We are looking to open another buy Bitcoin signal yesterday after the pullback, going in long just above the 20 SMA on the daily chart above.
ETHEREUM Returning Below $1,600
The price of Ethereum jumped higher last month indicating that there was a level of buying interest and demand for Ethereum at the sone around $1,600. Buyers have stepped in on several occasions at the area above this level but the 20 SMA (gray) has been acting as resistance on the daily chart. However this week buyers had another go at this moving average and pushed the price above it for some time, but it has retreated back below $1,600 now.
ETH/USD – Daily chart
- ETH Buy Signal
- Entry Price: $1,671.79
- Stop Loss: $1,371
- Take Profit: $1,971
www.fxleaders.com
COMMENTS