Forex Signals Brief for April 15: Quiet Day for the Easter Weekend


After the decision to increase interest rates by 50 basis points (bps) by the Reserve Bank of New Zealand on Wednesday and the Bank of Canada, the FED also hiked interest rates by 2bps in the last meeting while the Bank of England has hiked them by 0.65%. The European Central Bank (ECB) wasn’t expected to increase rates, and they didn’t.

It was pretty much a placeholder meeting for the ECB, leaving the timeline for APP purchases unchanged, as it was scheduled to end in Q3 while reaffirming that rate hikes will be gradual and will only come after QE ends. That goes in contrast with other central banks while inflation keeps surging as prices increase, so the Euro turned quite bearish yesterday after the ECB. The fact that kicking the can down the road to June means little chance of a July rate move. Today most markets are closed for Good Friday, so everything is expected to be calm, except for Cryptocurrencies and probably Oil.

Yesterday’s Signals

AUD/USD Sell SignalAUD/USD turned bearish more than a week ago, after failing to reach 0.77, sending this pair below moving averages. On Wednesday we saw a reversal higher but yesterday the price was reversing back down again when we opened the sell trade. The employment report from Australia was disappointing in the Asian session which kept the pressure to the downside so we booked profit n our signal eventually.

NZD/USD Sell SignalNZD/USD has been bearish since last week as well, despite the RBNZ hiking interest rates by 50bps on Wednesday. This pair retraced higher on Wednesday for some time after the rate decision, but the retrace failed at moving averages and formed a bearish reversal pattern, so we decided to open a sell signal which also closed in profit.

Crypto Update

RUNE/USD Buy Signal – Thorchain token RUNE was showing some decent buying pressure in March as the sentiment improved in the crypto market and a number of upgrades were launched for this blockchain. THORChain is now removing the need for intermediaries for trading non-native cryptos.

Traders can swap tokens across different networks while also launching Thorfinance (Thorfi) which will support borrowing and lending. So, RUNE has been showing bullish pressure since early March and after the retreat earlier this month the price started to bounce off the 200 SMA, so we decided to open a buy signal.

The 200 SMA held as support for Thorchain RUNE

Selling EUR/USD – The Euro turned bearish yesterday after the ECB decision as we mentioned above, as markets expect no rate hikes soon, unlike other central banks. The USD on the other hand has turned bullish, as expectations are for several 50bps rate hikes in the next FOMC meetings, so this pair is expected to remain bearish and we will try to sell retraces higher.

EUR/USD being rejected by the 50 daily SMA

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