Weekly Market Commentary | 22.01 – 28.01

Curious to know what’s happening on the markets this week? Take a quick tour of the latest news, economic updates, and trading setups that will keep you up-to-date and in the know!

Monday:

• Quiet start to the week on the charts, with American indices at all-time highs.
• Empty macro calendar, no significant economic data releases scheduled.

Tuesday:

• Focus shifts to Japan with several key events:
  • Interest rate decision (rates expected to remain unchanged).
  • Monetary policy statement and outlook report from the Bank of Japan.
  • Press conference following the Bank of Japan’s announcements.
• New Zealand inflation data release:
  • Quarterly inflation expected to decrease from 1.8% to 0.5%.

Wednesday:

• Busy day with PMIs from leading economies:
  • PMIs from France, Germany, Eurozone, UK, and the US.
  • Only the UK and US flash services PMIs expected to be above 50.
  • Other PMIs anticipated to fall below the 50 threshold.
• Interest rate decision from the Bank of Canada:
  • Rates expected to hold steady at 5%.

Thursday:

• Another key interest rate decision:
  • European Central Bank expected to maintain current rates.
• Advanced GDP data from the US:
  • Forecasted to show a 2% rise.
• European Central Bank press conference following the interest rate decision.

Friday:

• Quieter end to the week:
  • Tokyo Core CPI expected to decrease to 1.9%.
• Core PCE price index from the US:
  • Predicted to rise to 0.2%.

Setups for This Week:

AUDJPY

• Primary View:
  • Formation of a shooting star candlestick pattern (blue color).
  • Located at the high from early January and December highs (green color).
  • A drop below the shooting star indicates a bearish reversal, signaling a sell opportunity.
• Alternative View:
  • If the price climbs back above the yellow line, it would indicate a buy signal.

NZDUSD

• Primary View:
  • Currently in a sideways trend (green color).
  • Maintaining position above key horizontal support (blue color).
  • Positive sentiment as long as the price remains above the blue support line.
• Alternative View:
  • A daily close below the blue support area would trigger a sell signal.

WTI Oil:

• Primary View:
  • Trading within a symmetric triangle pattern (blue lines).
  • A breakout above the upper line of the triangle would be a buy signal.
• Alternative View:
  • Closing below the lower line of the triangle would be a sell signal.