This is what awaits you in this article
Yesterday’s Market Wrap
Yesterday was another quiet day as traders and investors awaited the FOMC meeting that will be held tonight. The USD uptrend faltered on Monday, but yesterday things started to move back in favor of the dollar, which posted some modest gains against most of the majors.
The Reserve Bank of Australia (RBA) began raising interest rates as it delivered a 25 basis point hike at the start of the Asian session, more than the 15 basis point hike the market was expecting. This pushed interest rates up from 0.10% to 0.35%, helping the AUD jump around 100 pips. But there was no follow-up as China’s economic contraction weighed on commodity dollars.
The data agenda today
Today China and Japan are still off on Labor/Green Day so the Asia session was slow although we had the jobs report from New Zealand and NZ Central Bank Governor Orr speaking early in the session. The unemployment rate should fall from 3.2% to 3.1%. The final reading for March euro-zone services is not expected to change significantly.
The ADP non-farm payrolls report and ISM services in the US session will be the last economic data for the Fed ahead of its interest rate decision later tonight. Although it was decided to hike interest rates to 1.00% there will not be much of a surprise there. As such, Jerome Powell’s press conference will draw all the attention as Powell is expected to set the tone for the next few months.
Yesterday we opened two new forex signals as price action was slow again in most markets due to the Fed meeting later in the day. We went long USD as the pullback ended on Monday and buyers returned.
GBP/USD – sell signal
This pair recently went up but we decided to sell GBP/USD, as this pair has been quite bearish for the past few weeks. The pullback after such a steep decline that sent the price down from 1.31 to 1.24 seemed quite weak and the 20 SMA 9gray0 offered Resistance on the H4 chart so we decided to open a sell signal at this moving average which as GBP closed in profit /USD started to reverse to the downside.
GBP/USD 240 minute chart
EUR/GBP – buy signal
Yesterday we finally closed the trade we opened here last week. In the last two months we have seen EUR/GBP bounce up and down in a range roughly spanning 0.8250 to 0.85. We decided to open a buy signal on this pair last Friday as the price turned lower and yesterday on the H4 chart this pair bounced off the 200 SMA (purple) which served as support and our trade closed in profit.
EUR/GBP 240 minute chart
THORChain forms a descending wedge
RUNE started a strong uptrend last month that sent it up more than 400% as THORChain made some major upgrades. Although the highs are getting lower and lower to a greater extent. We decided to open a buy signal last month after the pullback to the 200 SMA (purple).
The price started to bounce off this moving average and we were comfortable in profit for some time, but bearish sentiment in the crypto market sent RUNE/USD lower. Although we stick to our signal and may add further down towards support as the fundamentals for THORChain are strong.
RUNE/USD is slipping below the moving averages
Terra LUNA has started bouncing
We decided to buy the Terra LUNA token because these cryptocurrency has been the most bullish of the majors for many months as it continues to make higher highs until the last month. LUNA/USD retreated to the low $40s in January but the 200 SMA (purple) held twice as support and buyers resumed the uptrend.
Luna reached almost $120 earlier this month but turned back again, although this time it was the 100 SMA (green) that served as support where we decided to open a buy signal. LUNA/USD tried to bounce off this moving average but the 20-day SMA (grey) halted the advance and now the price has bounced back to the 100-SMA.
The 100 SMA held again as support for the LUNA token
Source: Crypto News Deutsch