Yesterday’s Market Wrap
Yesterday the sentiment in financial markets was mostly positive, since the reversal on Friday last week after the US retail sales weren’t as strong as to justify a 100 bps rate hike from the FED next week. So we’re back to the 75 bps hike which has improved the sentiment and sent the USD lower.
Yesterday risk assets continued to move higher, especially after the US housing data which again, was positive but not too strong. Stock markets and cryptocurrencies got pretty excited, and pushed higher, particularly Bitcoin. The UK earnings index dipped in June, which will weigh further on the British public pockets as prices keep increasing.
The Data Agenda Today
Early in the Asian session the Reserve bank of Australia governor Lowe held a speech at the Australian Strategic Business Forum, in Melbourne, confirming the hawkish stance and the need to raise interest rates. The CPI (consumer price index) inflation report was released a while ago, showing another increase in June, while the CPI report from Canada will be released in the US session.
Yesterday we opened six trading signals, in Forex, commodities, and cryptocurrencies, having positive results at the end of the day. We had two losing signals in forex as the US retreated and the Euro took advantage, although we had four winning signals in other forex pairs and Gold.
EUR/GBP – Sell Signal
EUR/GBP was bullish, having made some decent gains, despite the Euro being against the USD. But, the GBP has been even more bearish than the Euro, despite numerous rate hikes from the Bank of England since December. Although we saw a retreat below moving averages on the H4 chart and decided to open a sell signal, which closed in loss yesterday as the price retraced to the 200 SMA (purple).
EUR/GBP – Daily chart
GOLD – Buy/Sell Signals
We keep opening Gold signals and booking profit, as the downtrend continues with moving averages pushing the price lower. Yesterday we continued to trade Gold, after closing two more signals. Both of them closed in profit, so we keep accumulating golden pips.
XAU/USD – 60 minute chart
Cryptocurrencies have been showing bullish signs in recent days after trading in a range for a month and yesterday we saw a breakout in most major cryptocurrencies. Although that was signalled by the breakout on Ethereum on Monday as it pushed above the range.
BITCOIN Breaks the Range
Bitcoin had formed a top at around $22,500, although we were seeing the lows get higher which was a bullish sign and yesterday we finally saw a break to the upside and a push above the 50 SMA (yellow) on the daily chart. We tried to play the range as we had done in previous weeks, opening a sell signal near the top, but the bullish momentum was quite strong and the breakout happened.
BTC/USD – Daily chart
ETHEREUM Overcomes the 50 Daily SMA
Ethereum has been showing some bullish signs after consolidating in a range for a month. Smaller moving averages such as the 20 SMA (gray) and the 50 SMA (yellow) have been acting as resistance at the top, but yesterday the price pushed above the 50 SMA which could be the beginning of a larger bullish reversal, although we have to see how fundamentals/politics evolve in the crypto market.
ETH/USD – Daily chart