Week in Review April 12

Introduction – Week in Review April 12

Several high-impact reports were released from April 8 to 12th, including the Consumer Price Index (CPI), Producer Price Index (PPI), Unemployment Claims, and the Preliminary University of Michigan (UoM) Consumer Sentiment. These reports have a significant impact on various financial instruments and the currency market in particular. They are considered essential resources for investors and traders. The reports are closely scrutinized to gain insight into inflation and broader economic trends.

Gold

The world’s most precious metal continues its extravagant journey, following an upward trajectory backed by Central Banks, high-net-worth investors, positive momentum, and an unparalleled uptrend. Despite the strengthening of the US Dollar, the precious metal has achieved a new record high of 2,431 US Dollars per troy ounce.

Moving Average: The current price is still higher than the 50-period Moving Average line, which suggests that the market is moving upward.

Relative Strength Index: The Relative Strength Index (RSI) is above 70, indicating either a continuation of the uptrend or a potential correction to the downside.

Stochastics: The Stochastic oscillator is currently above the 80 overbought level, which suggests that the rally may continue or a retracement may occur.

Divergence: At a closer look, one can identify a negative divergence between the RSI and price, implying a correction.

Resistance: 2465.70, 2524.00, 2550.00, 2575.00

Support: 2363.72, 2296.11, 2261.74, 2194.13

SP500 

The SP500 Index closed the week on a bearish note, forming a Japanese Marunozu candlestick. After a long bullish Thursday, it breached the dynamic support of the 50-period Exponential Moving Average line, setting a negative sentiment for the week ahead.

Moving Average: The price fell below the 50-period Moving Average line, indicating that the SP500 is on a downward trajectory.

Relative Strength Index: The RSI moved below the 50 baseline, implying a downtrend.

Stochastics: The Stochastic oscillator crossed in the neutral zone.

Divergence: Not available

Resistance: 5148.16, 5180.24, 5230.97, 5263.05

Support: 5097.43, 5065.35, 4996.33, 4850.07

US Dollar Index

The US Dollar Index has experienced a rebound after hitting the 50-period Exponential Moving Average, creating a Hammer reversal pattern. The release of inflation data, the Consumer Price Index, has further supported the upward trajectory of the US Dollar Index, pushing it to new highs. Moreover, any speculation regarding rate cuts in the near future has been deemed unlikely, which has further strengthened the Dollar. As a result, investors should be cautious and wait for clearer signals before making any investment decisions.

Moving Average: Price remains above the 50-period Moving Average line, indicating that the US Dollar Index is following an upward path.

Relative Strength Index: The RSI moved above the 70 extreme level, implying a bullish outlook.

Stochastics: The Stochastic oscillator hovers above the overbought area after crossing the 80-extreme line.

Divergence: Not available

Resistance: 105.89, 106.78, 108.72

Support: 105.36, 104.72, 104.19, 103.55

EURUSD

The Euro completed a bearish swing this week, opening the way for lower exchange rates coupled with increasing inflationary pressure and geopolitical turbulence. As a result, investors turned to the EURUSD, a safe haven.

Moving Average: Price remains below the 50-period Moving Average line, indicating that EURUSD is in a downward trajectory.

Relative Strength Index: The RSI also moved below the 70 extreme level, implying a continuation of the bearish outlook or a short-term correction.

Stochastics: The Stochastic oscillator, particularly the %K line, moved into the oversold area.

Divergence: Not available

Resistance: 1.06606, 1.07244, 1.08127

Support: 1.05967, 1.04644, 1.02044

BTCUSD

This week, Bitcoin continued the sideways direction as traders and investors await the block-reward halving for direction later next week.

Moving Average: Price moved above the 50-period Moving Average line, indicating that Bitcoin is in an upward trajectory.

Relative Strength Index: The RSI exceeded the 50 baseline, implying a bullish outlook.

Stochastics: The Stochastic oscillator hovers below the overbought area in the neutral region.

Divergence: Not available

Resistance: 72089.711, 75279.205, 79074.671

Support: 68294.305, 65104.871, 61309.405 58119.971

Upcoming Economic Events

The economic events this week may give traders an indication of the market’s direction.

Monday, 12:30 pm (GMT+0): Retail Sales m/m (USD)

Tuesday, 02:00 am (GMT+0): Industrial Production y/y (CNY)

Thursday, 06:00 am (GMT+0): Claimant Count Change (GBP)

Tuesday, 12:30 pm (GMT+0): CPI (CAD)

Tuesday, 10:45 pm (GMT+0): CPI (NZD)

Wednesday, 06:00 am (GMT+0): CPI y/y (GBP)

Thursday, 01:30 am (GMT+0): Unemployment Rate (AUD)

Friday, 06:00 am (GMT+0): Retail Sales m/m (GBP)

Summary

Traders must remain updated about the latest geopolitical and economic developments, exercise due caution, and closely monitor market trends to optimize their investments and minimize potential risks or losses. Employing technical analysis tools to assess market sentiment and validate underlying fundamentals is crucial.