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Yesterday’s Market Wrap
Yesterday, risk-off sentiment drew traders’ attention as most risk assets tumbled while the USD and JPY posted sizeable gains. Risk currencies like commodity dollars plummeted. Commodities, apart from crude oil, which recovered from the $100 zone, also declined as fears of a recession in China continued to weigh. cryptocurrencies fell further, whereby BTC traded below $30,000 Ethereum under $2,000. Terra LUNA is leading the decline, falling below $1 and heading towards $0.
In China, consumer inflation (CPI) also jumped, although it remains at normal levels at 2.1%, while producer inflation (PPI) remains very high. In the US, CPI (Consumer Price Index) inflation numbers came in ahead of expectations, showing an 8.3% YoY increase, further helping the USD. UK data was mostly negative, weighing on the GBP.
The data agenda today
This morning, the final French CPI inflation figures for April will give an indication of the inflation Eurozone, to be released later in the month. In the US, the University of Michigan consumer sentiment report is expected to remain steady, which is good as prices rise to record levels. But risk sentiment will again be the key factor today, deciding that most markets will close ahead of the weekend.
Yesterday we continued the great run of the previous day with 3 winning forex signals, as well as 2 signals in gold and silver also closing in profit. We opened a total of 5 signals yesterday and all of them hit the take profit target and gave up 150 pips of profit. So we continue the upleg after the downside in cryptocurrencies during the crash earlier this week.
Gold XAU – sell signal
Gold continues to crumble lower despite negative risk sentiment in financial markets, sending risky assets like stock markets and cryptocurrencies lower. Gold should have been bullish as a safe haven but remains bearish and yesterday we decided to sell XAU/USD after the retracement faded higher at 20 SMA (grey) which closed in profit.
Gold – 240 minute chart
NZD/USD – sell signal
We remain severely understaffed NZD/USD which has been bearish for more than a month and attempts to reverse to the upside all ended in a reversal and a new low. There was no retracement to the upside yesterday as the commodity dollars continued to slide and we decided to sell the pair as the 20-SMA is in Resistance and lately posted gains.
NZD/USD – 60 minute chart
Cryptocurrencies also remain sharply bearish and resume selling pressure this week. Terra LUNA is leading the decline after plunging to $0.0020 as its stablecoin UST fell back below $0.30 yesterday. The panic in the crypto market continues, keeping the pressure bearish.
Bitcoin forms a doji
BTC/USD since hitting a new record high last November, and now the decline has resumed after several months of consolidation. The last attempt to turn bullish ended in March at the 200-day SMA (purple) and BTC fell below $30,000 after escalating selling pressures over the last week. Bitcoin broke below $30,000 but closed as a doji yesterday which is a bullish signal. Let’s see if there will be a reversal to the upside.
Will Last Bitcoin Support Hold?
Will Ethereum Stop at the $1,700 Support?
Ethereum also turned bearish in November and in the last attempt to turn bullish again in March, buyers failed at the 200 SMA (purple) on the daily chart. This month we’ve seen a drop in ETH/USD, but last year’s support around $1,700 might hold, let’s see. If so, then we could go long on Etherem down there.
ETH/USD daily chart
Source: Crypto News Deutsch