Last week Market Pack
Adverse events in the financial markets are more likely to accumulate last week, which has had a negative impact on risky assets such as stock markets and cryptocurrencies. The UK economy contracted for the second month in April, weighing heavily against the GBP. Retail sales and the Empire State Manufacturing Index were negative in the United States shortly before the FOMC meeting. The FED showed an increase of 75 bps on Wednesday, with markets expected and the US dollar initially rising, but in the next two days it turned into a relief rally.
The Swiss National Bank rallied 50 bps, raising interest rates from -0.75% to -0.25%, sending the CHF on a strong jump. The Bank of England has shown its fifth consecutive rate hike, as many analysts see the central bank’s recession plummeting, although all of these gains and coming this year are hurting sentiment and risk assets. They have no effect on inflation. Crude oil has fallen below $ 110 a barrel, with Friday’s loss of around $ 10, meaning a global recession is imminent.
This week’s data agenda
There are not many important news outlets on the economic calendar to make a big difference this week other than the central bank talks, so market sentiment will determine price action. For all intents and purposes, they have to get worse. On Wednesday, the UK and Canada Consumer Price Index (CPI) reported inflation, which is expected to increase further, with manufacturing and service numbers coming out of Europe and the US over the weekend.
This week was one of the most volatile financial markets. In forex we have seen some big changes that are challenging for all traders. We have opened many trades in all markets, but over the weekend, we have more winning signals, especially in forex.
Euro / dollar – Sell signal
The Euro / USD has been tightening for more than a year, but growth has slowed since March, as CPI inflation has been rising in the US and FED has accelerated. As a result, we are tired of this’s opening up a lot of forex signals, as ECB stays on top of FEDs. Even the most recent rally in this pair has failed, so we are facing a bold bias after several victory signs last week.
EUR / USD – H4 chart
USD / JPY – Sell signal
As growth on these pairs is accelerating, we are expecting a USD / JPY bullying scandal as the Bank of Japan is still in a state of flux and the FED is fleeing at a reasonable rate. We had a lot of buying signs on this pair last week, most of which were closed for profit.
USD / JPY – 240 minute chart
Crypto Currency Update
After a month of trading, cryptocurrencies resumed volatility in the first week of June. Ethereum (ETH) broke below $ 1,000, Bitcoin (BTC) broke below $ 20,000 on Saturday, although we saw a strong reversal yesterday. So, maybe this was to stop hunting before the big upheaval?
Cardano forms a triangle.
Cardano has been weak since September last year after being released from the Alonzo amendment. We have seen many attempts to change this crypto bullish, but buyers have not always failed and the failure continues. Although the support zone is around $ 0.45 and the downward trend line, they are creating a downward triangle. in order to, ADA / USD It can be broken on both sides, but the pressure remains on the lower side.
ADA / USD Daily Chart
Bitcoin Downhill and over $ 20,000 back
As the decline in the crypto market continued, Bitcoin turned bearish again. BTC has been gaining more than $ 20,000 for some time but on Saturday sellers pushed below that level and closed the day well. But yesterday we saw a big change in bullying and the price went up again with more than $ 20,000 and the last day it was a candle, which is a sign of a reversal of bullying.
BTC / USD – 240 minute chart