Forex Signals Brief August 18: Retail Sales Show US Consumer Health

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Yesterday’s market wrap

Yesterday began with the publication by the Reserve Bank of Australia (RBA) of the minutes of its last meeting, which repeated comments from the press conference that rate hikes are not following a predefined path. Profits dipped in the UK despite the continued rise in inflation, while economic sentiment in the euro zone continued to decline.

The most important release yesterday was Canada’s inflation report, which showed a slowdown in July, following the situation in the United States. Bank of Canada’s Macklem said inflation in Canada had come down a bit but was still far too high, so rates for another 75 basis point rate hike from the BOC remained students. US consumption figures remained positive, so the situation in the US is improving a bit now.

The data agenda today

Today started with Australia’s second quarter wage price index and the Reserve Bank of New Zealand’s rate decision raising rates again by 0.50% to 3.00%. The flash Eurozone GDP for the second quarter, which will be published shortly, should remain unchanged. Core retail sales for July are expected to show a slight decline, but the main event will be the Fed meeting minutes, which will provide further clues if the market expects the FED to deliver another rate hike 75 basis points or slow to 0.50%.

Yesterday we had another positive day with our trading signal which continued for several days, after last week we had some difficulties with our forex signals as the markets remained uncertain. But nevertheless ended the week quite well, with many winning signals over the past two days. Yesterday we continued this performance and opened signals in different markets, all of which closed in profit.

GOLD – Sell signal

We have been buying and selling Gold as the price has moved, although yesterday we decided to open a Gold sell signal as the trend turned bearish this week and the 20 SMA ( gray) was offering resistance on the H1 chart. The USD held the edge as risk sentiment remains uncertain.

Gold XAU – 60 Minute Chart

staying short on USD/JPY Below the 200 SMA

USD/JPY has been retreating since mid-July after the massive rally in March. During the uptrend, we continued to buy pullbacks on this pair, but now we are selling higher retracements. Yesterday we opened two forex sell signals here at the 100 SMA (green) which acted as resistance and both closed in profit.

USD/JPY – H4 Chart

Cryptocurrency update

Cryptocurrencies remained bullish over the past week as they continued to push higher highs. Ethereum surged above $2,000 while Bitcoin surged above $25,000. In recent days we have seen a small pullback, but it seems small and we are about to buy cryptocurrencies again,

Purchase Bitcoin at 50 SMA

Bitcoin turned bullish again last week, resuming the uptrend after the previous week’s pullback and the support provided by the 20 SMA (grey). We opened a BTC buy signal which closed in profit when the price broke above $25,000, although the 100 SMA (green) acted as resistance on the daily chart. We decided to open another buy trade after yesterday’s retreat at the 50 SMA (yellow) on the H4 chart, which was functioning as support.

BTC/USD chart – H4

Place a pending purchase order on ETHERUM?

Ethereum remains one of the most bullish cryptocurrencies, despite the occasional pullback on the downside. Ethereum bulls pushed the price above $2,000 last week, although we saw some pullback over the weekend. We are following the price action to see where we can buy this digital coin, either at the 50 SMA (yellow) or the 100 SMA (green).

ETH/USD – 240 minute chart

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