Last week’s shopping package
The main event for traders last week was the meeting minutes from the Fed. Expectations were some hawkish comments on the previous 75 bps rate, which is a slower rate, but there were no comments in favor of the US dollar. Vulnerability turned negative in financial markets, even as risk assets and stocks turned bullish, ending the week low.
The week didn’t start off well either, with a round of economic data from China missing expectations and showing a major economic problem there. Inflation in the United Kingdom increased by more than 10%, but the improvement of retail sales at the end of the week was positive, but the risk property closed the week.
This week’s data agenda
Today the economic calendar is almost empty, but tomorrow we have big manufacturing and services data from Europe and the US. In this downward spiral since the beginning of the year, central banks have turned hawkish, making the current state of the global economy clear. On Wednesday we will have US durable goods orders, and on Thursday Q2 GDP is expected to improve sharply to -0.8%.
Sentiment in financial markets turned negative last week, especially after the FOMC meeting minutes did not give any bearish hints. We used that to go long on USD and short risk assets as we have many winning forex signals proving it was a good decision. In total we had six losing signals out of 24 trading signals which are common in most major financial markets such as forex signals, crypto signals, commodity signals, etc. with a 75%-25% win/loss ratio.
GBP/USD has been in a bearish trend since late last year and has resumed its downtrend this month, especially last week. We continue to hold a bearish bias for this pair and last week opened several sell signals here, all closed in profit, the downtrend is developing again.
GBP/USD – Daily Chart
Gold – Sell signs
Gold has turned bearish in the last couple of weeks and we have decided to be bold here as well, so we are opening sell signals. The 20 SMA (gray) has turned into resistance on the daily chart, pushing the price down and failing to find it in the last several trading sessions.
Gold XAU – 240 minute chart
Crypto currency update
Cryptocurrencies have been very bearish as they continued to rally higher last week. Ethereum rose above $2000 while Bitcoin rose above $25,000. We have seen a bit of a pullback in recent days, but it looks weak and we are getting ready to buy cryptocurrencies again.
Bitcoin Breaking the channel
As sentiment improved in the crypto market, Bitcoin had been on a two-month low since June. A bullish channel has formed on the daily chart following the last breakout in early June, and we are buying BTC/USD during a pullback. After the rejection at the 100 SMA, we opened a signal at the bottom of the range, hoping for another upswing, but the breakout happened.
BTC/USD – Daily Chart
to buy ETHEREUM one more time
Despite its recent lows, Ethereum remains one of the most massive cryptocurrencies. The decline stopped at the averages acting as support and the stochastic indicator was oversold, so we decided to open another buy Ethereum signal.
ETH/USD – Daily Chart