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Short Forex Signals for May 11: Risk sentiment remains bearish

This is what awaits you in this article

Market overview of the last week

The calendar was bright again yesterday so the focus was on market sentiment and the impact it will have on risk assets and the USD following Monday’s stock market and cryptocurrency market crash. The US dollar has been bullish for months and is maintaining its bullish bias after closing near the highs yesterday, while commodity dollars remain bearish as risk sentiment remains bearish.

ZEW economic sentiment from the euro zone has improved somewhat this month but remains negative, an indicator of a possible recession, with some analysts predicting a global recession soon. Crude Oil continued its decline today after yesterday’s bearish trend reversal as US WTI slipped below $100.

The data agenda today

After yesterday’s deterioration, risk sentiment will once again draw attention today. We will see if the decline in stock markets, commodities and commodity dollars continues. the inflation rose in China, the CPI report released overnight showed, although it is far below the rest of the world despite the rise in producer prices.

In the US session, the CPI (Consumer Price Index) inflation report is expected to show a slight slowdown on a monthly basis, but it still remains elevated. US crude inventories are expected to turn negative, which would help prices in normal times, but these are not normal times.

forex-Signal update

NZD/USD – sell signal

NZD/USD Quite a bearish trend for about a year now and the decline has recently picked up pace as shown on the H1 chart below with USD turning quite bullish. NZD, on the other hand, is bearish as commodity dollars are hit by recession fears in China despite RBNZ rate hikes. So we sold this pair as it is declining higher and yesterday we decided to do it again at the 20 SMA (grey) which is as Resistance functioned.

Short Forex Signals for May 11: Risk sentiment remains bearish, Crypto Trading News

NZD/USD – 240 minute chart

USD/JPY – buy signal

Yesterday we decided to buy this pair after the retracement to the 50 SMA (yellow). We bought USD/JPY as it has been in a strong uptrend for a long time and buying pressure has increased sharply in the last month after the start of the conflict in Ukraine when the safe haven JPY should have been bullish and this pair bearish. Our signal closed in profit after reversing the 50 SMA.

Short Forex Signals for May 11: Risk sentiment remains bearish, Crypto Trading News

USD/JPY 240 minute chart

Cryptocurrency update

cryptocurrencies have resumed selling pressure after declining higher in March. The decline picked up an incredible pace on Monday after breaking key support levels in many digital currencies. Although the sell-off stalled a bit yesterday.

Looking for another Terra LUNA buy signal

Last month we decided to buy the Terra LUNA token as for many months this cryptocurrency was the most bullish among the major cryptocoins as it kept making higher and higher highs until the end of March. LUNA/USD reached almost $120 this month but turned back.

We decided to open a buy-signal at 100 SMA (green) which initially acted as support but was eventually broken as Terra LUNA crashed lower and broke below the 200 SMA. The support zones have been broken up so the LUNA coin is trading below $20. $2 is the next support which would be a great place to buy.

Short Forex Signals for May 11: Risk sentiment remains bearish, Crypto Trading News

LUNA/USD – daily chart

Should we BTC buy around the $30,000 support?

BTC/USD hit a new record high of $69,000 last November, but sellers have been in control since then. The last attempt to turn bullish ended at the 200-day SMA (purple) and the price returned back below $40,000. Now the price is trending around $30,000 where the main support zone is $20,000 ahead of the next one.

Short Forex Signals for May 11: Risk sentiment remains bearish, Crypto Trading News

Will Bitcoin Support Hold?

Source: Crypto News Deutsch

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