Yesterday’s Market WrapYesterday started with the trade balance reports from Australia and China, both of which were expected to show a decline from l
Yesterday’s Market Wrap
Yesterday started with the trade balance reports from Australia and China, both of which were expected to show a decline from last month, but the balance came even lower, indicating that the trade activity is slowing in Australia as well, as it slows in China, which is Australia’s biggest partner.
In the European session, the German Industrial Production showed another decline, confirming that the Eurozone economy is in a difficult position. The Eurozone GDP was revised lower from 0.3% to 0.1% for Q2, which further reinforced this scenario.
Later the initial unemployment claims came in softer than expected, confirming the declining trend, suggesting that the labour market is in good shape in the US. The Unit Labor Costs for Q2 were also revised higher by 4 points, which calmed some nerves after last week’s soft employment reports from the US. This supported the USD which continued the bullish momentum from the previous day.
Today’s Market Expectations
Today started with the Final GDP from Japan which is expected to be revised a tick lower to 1.4% from 1.55 previously. That will be followed by the French Industrial Production which is expected to have turned positive in August, although after yesterday’s negative number from Germany, we might see a miss from France as well.
After that, we have the EU Economic Forecasts which I don’t expect to be positive. The employment report from Canada will close the week, with the Employment Change expected to show an 18.9K increase in net jobs, while the Unemployment Rate is expected to tick higher to 5.6% in August from 5.5% in July.
Yesterday the USD continued the bullish momentum after resuming earlier this week, with the lower unemployment claims giving the buck further support. We opened five trading signals, although only three of them reached the targets, two of which hit the take profit target while one closed in loss. Two other forex signals remained open for today.
The Retrace in GOLD is Over
Since May, the price of Gold was steadily declining, and this decline gained momentum in August, primarily because the economic data coming from the United States indicated resilience in the US economy. This downward trend persisted until the middle of August, marked by a pattern of achieving progressively lower highs in Gold prices.
However, there was a notable change in the last two weeks. During this period, there was a reversal in the trend, causing the price of Gold to rise above $1,950. Yesterday the unemployment claims came in lower than expectations confirming the declining trend, suggesting that the labour market is in good shape. This has given further support to the USD, which is pushing Gold lower. We decided to open a sell Gold signal at the 50 SMA (yellow) on the H1 chart, which was acting as resistance, rejecting the price.
XAU/USD – 60 minute chart
- Gold Sell Signal
- Entry Price: $1,923
- Stop Loss: $1,937
- Take Profit: $1,915
EUR/USD Slipps Below 1.07
EUR/USD continues to remain bearish on anticipation that the European Central Bank (ECB) will maintain its current interest rates without any changes, as the European economy continues to show signs of increasing weakness which might send the Eurozone economy into a recession. The US economy, on the other hand, is showing mixed signals, which is keeping the USD supported, so this pair continues to move lower, breaking below 1.07 yesterday.
Cryptocurrency Update
BITCOIN Getting Comfortable Below $26,000
BTC/USD – Daily chart
We decided to open another buy Bitcoin signal yesterday after the pullback, going in long just above the 100 MS Aon the H4 chart above.
- BTC Buy Signal
- Entry Price: $27,157.1
- Stop Loss: $25,113
- Take Profit: $29,113
ETHEREUM Keeps Trading in the Range Above $1,600
Ethereum has demonstrated a higher level of resilience compared to Bitcoin. While it was not immune to the recent crypto market crash, with the ETH/USD pair dropping below $1,600, there’s a significant observation on the weekly chart. The 200-day Simple Moving Average (SMA), represented by the purple line, acted as a support level during this turbulent period.
Considering this observed support and Ethereum’s historical behavior, a decision has been made to take a long position on Ethereum once again. This suggests confidence in the cryptocurrency’s ability to rebound and potentially perform well in the future.
ETH/USD – Daily chart
- ETH Buy Signal
- Entry Price: $1,671.79
- Stop Loss: $1,371
- Take Profit: $1,971
www.fxleaders.com
COMMENTS