Yesterday’s Market WrapYesterday markets remained slow as the economic data was pretty light during the first two trading sessions, although even afte
Yesterday’s Market Wrap
Yesterday markets remained slow as the economic data was pretty light during the first two trading sessions, although even after the release of the US durable goods orders which posted a positive surprise for August, markets failed to gain momentum. However, the demand for the USD remained stable and the dollar progressed higher across the board, with the Euro and the GBP being the weakest among major currencies.
Crude Oil continued the surge after Tuesday’s reversal and it rose $3.34, or 3.7%, to $93.80. The high price of $94.17 would put it beyond the 50% midpoint of the move down from the high of June 2022 at $93.78, before spinning downward into the close. Spot Gold tumbled around $25.24 lower to $1875.19. That is the lowest level since March 2023.
Durable Goods Orders in the United States turned positive this time, increasing by 0.2%, or $0.5 billion, to $284.7 billion in August, according to the US Census Bureau on Wednesday. This data follows a 5.6% drop (updated from 5.2%) in July and was better than the market’s projection of a 0.5% drop, while non-defense capital orders posted a decent 0.9% jump last month. That helped the USD further, together with FED’s Kashkari’s comments, saying that the data will tell the Fed if more hikes are needed and he expects FED to hold rates steady next year.
Today’s Market Expectations
Yesterday we saw a retreat in the USD after being bullish for more than two months. The revised GDP report showed mixed numbers, which gave the market a shake-off but at the end of the day, the USD ended up lower. We continue to remain long on the USD as long as the sentiment changes, although yesterday we got caught on the wrong side with two trading signals during the retreat.
GOLD Continues to Crash Despite the USD Retreat
Gold has made a bearish breakout as the image below shows. On the daily chart, XAU/USD was finding support around the 200 SMA (purple), which rejected the price twice in about a month, and we have already seen two bounces off of it, but the price kept returning to it, so the 200 SMA has been broken now. Yesterday the decline continued and the price fell below $1,960.
XAU/USD – Daily chart
- Gold Sell Signal
- Entry Price: $1,900
- Stop Loss: $1,915
- Take Profit: $1,980
Buying USD/JPY at the 20 SMA
Buyers continue to remain in charge in USD/JPY, as they push the price toward the 150 level which is a big round number and a psychological level. Moving averages have been acting as support on the H4 chart, pushing the price higher and yesterday we saw another pullback to the 20 SMA (gray) which held. We decided to open a buy signal above this moving average.
Cryptocurrency Update
BITCOIN Pushes Above the 50 Daily SMA
BTC/USD – Daily chart
- BTC Buy Signal
- Entry Price: $26,248.2
- Stop Loss: $24,500
- Take Profit: $28,000
ETHEREUM Facing the 50 SMA
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
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