Forex Signals Brief for August 17: Will Inflation Slow in Canada Too?
Skerdian Meta•Tuesday, August 16, 2022•2 min read
Yesterday’s Market Wrap
Yesterday markets started on a negative footing, after Friday’s reversal which followed the jump in risk sentiment on slower US CPI inflation and lower PPI inflation last week. Over the weekend, we heard that more lockdowns were being applied in China, which is another negative factor for risk sentiment.
Besides that, we had a round of negative data from China, which showed that retail sales, industrial prodiuction, and fixed asset investment all slowed in July, indicating that the Chinese economy is having difficulties and it will weigh on the global economic activity, that is already heading into a recession. As a result, risk currencies tumbled while the USD resumed the bullish trend, while in the US session, the Empire State Manufacturing Index fell in deep contraction, which kept the sentiment negative throughout the day.
Today started with the meeting minutes from the Reserve Bank of Australia which repeated the lines of adjusting the policy (rate hikes) to the economic data. The earnings report from the UK showed a slower increase, which is about half of the inflation rate increase, which increased further in July. The ZEW economic sentiment is expected to show a slight deterioration this month, while later in the afternoon the CPI inflation report will be released from Canada.
Forex Signals Update
Last week we had some difficulties with our forex signals as markets remained uncertain, but closed the week pretty well with many winning signals in the last two days. Yesterday we continued that performance and opened signals across different markets, all of which closed in profit.
WTI Oil – Sell Signal
We have had great success trading crude Oil as the pressure remains to the downside and we keep selling retraces higher. We did so again yesterday and booked profit on another Oil signal, as WTI pushed below $77, which is the lowest level since early February.
US crude Oil – 60 minute chart
Remaining Short on USD/JPY
USD/JPY has been on a retreat since the middle of July after the massive rally from March onward. During the bullish trend we kept buying pullbacks on this pair, but now we are selling retraces higher. Yesterday we opened two sell forex signals here at the 100 SMA (green) which was acting as resistance and both of them closed in profit.
USD/JPY – H1 chart
Cryptocurrency Update
Cryptocurrencies remained bullish last week as they continued to make higher highs. Ethereum climbed above $2,000 while Bitcoin increased above $25,000. In recent days we have seen a small retreat, but it seems weak and we’re getting ready to buy cryptocurrencies again,
Buying BITCOIN at the 50 SMA
Bitcoin turned bullish again last week, resuming the uptrend after the retreat in the previous week and the support provided by the 20 SMA (gray). We opened a buy BTC signal which closed in profit as the price moved above $25,000, although the 100 SMA (green) has been acting as resistance on the daily chart. We decided to open another buy trade after the retreat yesterday at the 50 SMA (yellow) on the H4 chart, which was working as support.
BTC/USD – H4 chart
Placing A Buy Pending Order on ETHEREUM?
Ethereum remains one of the most bullish cryptocurrencies, despite the occasional pullback lower. Ethereum buyers pushed the price above $2,000 last week, although we have been seeing a pullback over the weekend. We are following the price action to see where we can buy this digital coin, either at the 50 SMA (yellow) or the 100 SMA (green).
ETH/USD – 240 minute chart
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR
See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
15 hours ago
Save
Comments
Subscribe
Login
Please login to comment
0 Comments
Oldest
Sidebar rates
Related Posts
15 hours ago
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals