Week in Review Ending April 5

Introduction

During the first week of April, from the 1st to the 5th, several high-impact reports were released, including the Manufacturing PMI, Services PMI, Consumer Price Index, and the prestigious Nonfarm Payrolls report, which significantly impacted various financial instruments. The Nonfarm Payrolls report, in particular, is known for its ability to influence market movements and is, therefore, considered an essential resource for investors and traders. Its findings are closely scrutinized to gain insight into the state of the labor market and broader economic trends.

Gold – Week in Review Ending April 5

Gold had a positive end to the week by setting a new all-time high for the second consecutive week, despite a bearish session on Thursday. The precious metal has achieved a new record high of 2435.74 US Dollars per troy ounce.

Moving Average: Price remains above the 50-period Moving Average line, indicating an upward direction.

Relative Strength Index: The RSI hovers above the 70 overbought territory, suggesting a continuation of the uptrend or a possible correction to the downside.

Stochastics: The Stochastic oscillator remains above the 80 overbought area, implying a continuation of the rally or a probable retracement.

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

Resistance: 2365.12, 23.86, 2435.74, 2452.45

Support: 2211.17, 2131.79, 2070.42, 2009.04

SP500 – Week in Review Ending April 5

The SP500 Index closed the week on a bullish note, forming a Japanese candlestick pattern. It rebounded from the 50-period Moving Average line after a long bearish Thursday, setting a positive sentiment for the week ahead.

Moving Average: Price remains above the 50-period Moving Average line, indicating that the SP500 is back in an upward trajectory.

Relative Strength Index: The RSI moved above the 50 baseline, implying a continuation of the uptrend.

Stochastics: The Stochastic oscillator hovers above the oversold area but in a neutral zone.

Divergence: Not available

Resistance: 5237.94, 5271.47, 5296.65, 5330.18

Support: 5110.75, 4975.81, 4931.41, 4896.77

US Dollar Index – Week in Review Ending April 5

The US Dollar Index has formed a Hammer and a Shooting Star Japanese candlestick pattern, which may be indicative of indecisiveness in the market. The formation of these patterns, which feature small real bodies with long upper and lower shadows, suggests that traders are struggling to establish a clear direction for the index. As such, it may be prudent for investors to exercise caution until a clearer signal emerges.

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 50 baseline, implying a bullish outlook.

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

Divergence: Not available

Resistance: 104.14, 104.57, 104.88, 105.31

Support: 103.83, 103.40, 103.09, 102.67

BTCUSD – Week in Review Ending April 5

This week, Bitcoin formed a Wedge continuation pattern, eyeing higher price levels toward the 71836.738 zone.

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

Relative Strength Index: The RSI also moved above the 50 baseline, implying a bullish outlook.

Stochastics: The Stochastic oscillator hovers below the overbought area after a crossover between the %K and %D in the neutral area.

Divergence: Not available

Resistance: 69078.18, 71483.738, 71836.738, 73045.238

Support: 64498.438, 60817.245, 60417.138, 57014.418

Upcoming Economic Events

The economic events taking place this week may provide tarders with an indication of the market’s direction.

Wednesday, 02:00 am (GMT+0): Official Cash Rate (NZD)

Wednesday, 12:30 pm (GMT+0): Core CPI m/m (USD)

Wednesday, 01:45 pm (GMT+0): Overnight Rate (CAD)

Thursday, 12:15 pm (GMT+0): Main Refinancing Rate (EUR)

Thursday, 12:30 pm (GMT+0): Core PPI m/m (USD)

Thursday, 12:30 pm (GMT+0): PPI m/m (USD)

Thursday, 12:30 pm (GMT+0): Unemployment Claims (USD)

Thursday, 05:01 pm (GMT+0): 30-y Bond Auction (USD)

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

Friday, 02:00 pm (GMT+0): Prelim UoM Consumer Sentiment (USD)

Summary

Traders must keep themselves informed about the latest geopolitical and economic developments, exercise caution, and closely monitor market trends to optimize their investments and minimize potential risks or losses. It is crucial to use technical analysis tools to evaluate market sentiment and confirm underlying fundamentals.