Upcoming Market Movers: Top 5 Assets to Watch in the Financial World Next Week

Traders sitting a around the globe looking at their laptop screens for trading opportunities in the financial markets. The image reflects the title of the article, Upcoming Market Movers: Top 5 Assets to Watch in the Financial World Next Week
.21 Apr 2024
author avatar image Andreas Thalassinos

Table of Contents

Introduction

The “Week in Review April 15-20” was marked by the release of several high-impact reports and the completion of Bitcoin’s halving from 6.25 BTC to 3.125 BTC per block. The week ahead is dominated by the Purchasing Managers’ Index surveys, which are expected to shed light on the direction of the major currencies.

Traders are expected to closely monitor the currency pairs in light of the forthcoming release of significant economic data that could potentially impact currency valuations.

USD/CHF Bounced Off The Support Level 0.90109

USD/CHF price chart showing potential entry with the corresponding profit targets

The Swissie has been in an uptrend since December 28, a significant turning point when prices bounced off the daily low of 0.83322. This bounce off the support level marked the beginning of a series of consecutive higher peaks and troughs on the price chart, indicating a clear uptrend. The Moving Average Convergence/Divergence (MACD) is above the zero line, thus aligning with the bullish outlook. Also, prices are above the 50-period and 200-period Exponential Moving Average (EMA), indicating an upward bias. Moreover, the Double Crossover between the EMA(50) and EMA(200), popularly known in technical analysis as a Golden Cross, paved the way for higher exchange rates. This presents a potential buy opportunity above last week’s high at 0.91520, with possible targets at 0.92663 and 0.94332, respectively, offering a promising profit potential.

EUR/USD In A Downward Trajectory

EUR/USD price chart in a downtrend displaying potential sell opportunity with possible targets

The EUR/USD has been downtrending since March 8, when the currency pair rebounded from the daily high of 1.09811. Since then, the pair has exhibited a series of lower peaks and troughs, hence the downward direction. The MACD oscillator is below the zero line, indicating a bearish bias. Prices are also trading below both the Moving Average lines. Additionally, the recent Double Crossover between the EMA(50) and EMA(200), known in technical analysis as the Death Cross, opened the way for the bears to push the exchange rate even lower. This indicates a potential sell opportunity below last week’s low of 1.06010, with possible targets at 1.05459 and 1.04568, urging caution in trading decisions.

GBP/USD In Selloff Mode

GBP/USD price chart showing a downtrend with a possible sell opportunity and profit targets

The Cable has been following a downward path since March 8, when the exchange rate rebounded from 1.28936, followed by an Evening Star Japanese candlestick reversal pattern. The subsequent lower peaks and troughs paved the way for lower exchange rates. The MACD oscillator is below the zero line, signaling a downtrend. Also, prices are trading below both the Moving Average lines. The EMA(50) has yet to cross the EMA(200). Nevertheless, a potential sell opportunity is below last week’s low at 1.23666, with possible targets at 1.22765 and 1.21478.

Bitcoin Halving Completed

Bitcoin price chart displaying support and resistance levels after block reward halving

Bitcoin has been in a downtrend since March 14, when it hit an all-time high of 73864. Subsequent lower highs and lows attracted traders who entered with short positions, driving the cryptocurrency lower. Recently, on April 14, BTC formed a technical reversal known as the failure swing after forming a lower peak at 72865.023, and prices fell below the trough at 60817.245. Prices hover below the EMA(50) but above the EMA(200). The MACD is below the zero line, thus supporting the downward bias. Moreover, the Momentum oscillator is below the 100 baseline, signaling a downward direction. A potential sell opportunity is seen below 59651.338, with possible targets at 53518.496 and 50359.390.

USD/JPY Surging to Higher Levels

USD/JPY price chart showing a strong uptrend with a potential buy entry and profit targets

The USD/JPY pair has been following an upward trajectory since December 28, when it hit a daily low of 140.249 and formed a long-legged doji. The subsequent higher highs and lows paved the way for the bulls to pull the exchange rate higher. The MACD is above the zero line, hinting at an uptrend. Moreover, the Momentum oscillator is above the 100 line, supporting the bullish outlook. A negative divergence between the price and the oscillator alerts for a potential deceleration of the bullish momentum. The EM(50) is above the EMA(200), while prices are trading above both Moving Average lines. MACD is also above its Signal line, aligning with potential long trades above last week’s high at 154.785. Possible targets are estimated at 155.525 and 156.722.

High Impact Economic Events

  • Tuesday, 07:15 am (GMT+0): French Flash Manufacturing PMI (EUR)
  • Tuesday, 07:15 am (GMT+0): French Flash Services PMI (EUR)
  • Tuesday, 07:30 am (GMT+0): German Flash Manufacturing PMI (EUR)
  • Tuesday, 07:30 am (GMT+0): German Flash Services PMI (EUR)
  • Tuesday, 08:30 am (GMT+0): Flash Manufacturing PMI (GBP)
  • Tuesday, 08:30 am (GMT+0): Flash Services PMI (GBP)
  • Tuesday, 01:45 pm (GMT+0): Flash Manufacturing PMI (USD)
  • Tuesday, 01:45 pm (GMT+0): Flash Services PMI (USD)
  • Wednesday, 04:30 am (GMT+0): CPI q/q (AUD) 
  • Wednesday, 04:30 am (GMT+0): CPI y/y (AUD)
  • Wednesday, 04:30 am (GMT+0): Trimmed Mean CPI q/q (AUD)
  • Wednesday, 03:30 pm (GMT+0): Advance GDP q/q (USD)
  • Wednesday, 03:30 pm (GMT+0): Unemployment Claims(USD)
  • Friday, Tentative: BOJ Policy Rate(JPY)   
  • Friday, 03:30 pm (GMT+0): Core PCE Price Index m/m (USD)

What is the Purchasing Managers’ Index (PMI)

In the world of business, understanding key metrics is crucial for decision-making and growth forecasting. One integral tool that provides valuable insights into various sectors is the Purchasing Managers’ Index (PMI). This index is based on surveying management teams from diverse industries, such as manufacturing and services, to obtain an efficient and insightful snapshot of current economic trends.
Notable organizations like the Institute of Supply Management (ISM) and the IHS Markit Group are responsible for gathering and disseminating PMI data. Analysts and investors alike rely on this information to make informed assessments of a nation’s GDP growth potential, making the PMI an indispensable tool for comprehending and predicting economic fluctuations.

Summary

As highlighted in our recent review, “Upcoming Market Movers: Top 5 Assets to Watch in the Financial World Next Week”, the week ahead will potentially offer trading opportunities regarding the USD/CHF, the EUR/USD, the GBP/USD, USD/JPY and Bitcoin. It is paramount for traders to remain up-to-date with the latest geopolitical and economic developments, exercise caution, and closely monitor market trends to optimize their investments and mitigate potential risks or losses. Utilize technical analysis tools to assess market sentiment and validate underlying fundamentals.

author avatar image
Andreas Thalassinos

Experienced educator with a demonstrated history of working in the financial services industry. Skilled in Technical Analysis, Market Risk, Asset Management, Stock Market, and Trading Systems. Strong professional with a MSTA by Society of Technical Analysts (UK), CFTe and MFTA focused in Master of Financial Technical Analysis from International Federation of Technical Analysts (USA).