Weekly Market Commentary | 22.04 – 28.04

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:

• Kickstarting the week with a calm vibe as no major data releases are on the radar. It’s the perfect opportunity to sip your morning coffee and ease into the trading week.

Tuesday:

• • The day starts with a flurry of Purchasing Managers’ Index (PMI) reports from across the globe, offering insights into the health of various economies.
  • First up: France, Germany, and the Eurozone. Keep an eye out for any surprises!
  • Then, the focus shifts to the UK and US, where robust readings are expected to buoy market sentiment.
  • Cap off the day with a look at New Home Sales data from the US, offering clues about the state of the housing market.

Wednesday:

• • Australia takes the spotlight with its quarterly inflation figures, providing crucial insights into consumer price trends Down Under.
  • Meanwhile, Germany’s IFO Business Climate index offers a pulse check on business sentiment.
  • Over in North America, keep tabs on Canada’s retail sales and the US durable goods orders for potential market-moving surprises.

Thursday:

• • All eyes turn to the United States as GDP figures for the world’s largest economy take center stage.
  • Additionally, watch for Pending Home Sales data, providing clues about future home buying activity.

Friday:

• • Japan’s interest rate decision sets the tone for the day, with no major changes expected.
  • End the week on a data-packed note with the release of the US Core PCE Price Index and Revised University of Michigan Consumer Sentiment reports.

Setups for This Week:

AUD/JPY:
Primary View:

• The price recently bounced off the long-term uptrend line, forming a bullish hammer candlestick pattern (marked with orange). This suggests potential upward momentum.
• As long as the price remains above the red line, the bullish bias is likely to prevail.

Alternative View:

• A break below the red line would indicate a shift in momentum and could signal a potential downtrend.

USD/JPY:
Primary View:

• Currently, the price is consolidating within a rectangle pattern (marked with orange lines), indicating indecision in the market.
• The week commences with a test of the upper boundary, potentially signaling a breakout to the upside.

Alternative View:

• A rejection from the upper orange line may suggest a potential reversal and signal a sell opportunity.

EUR/USD:
Primary View:

• The price recently broke below the symmetric triangle pattern and breached the orange horizontal support.
• Remaining below this support level suggests a bearish sentiment prevailing in the market.

Alternative View:

• If the price manages to reclaim the orange support level, it could signal a potential reversal and present a buying opportunity.

Source: https://www.axiory.com/analytics/weekly-market-commentary/weekly-market-commentary-22-04-28-04