As we move into the second half of 2024, several trading instruments are set to offer significant opportunities for investors. Key market dynamics, such as political events, central bank policies, and global economic conditions, will influence the performance of these instruments. ICM212, a reliable trading system, analysis the top 10 instruments to keep an eye on:
Major Forex Pairs: EUR/USD, USD/JPY, GBP/USD
EUR/USD: This pair has been in a consolidation phase, fluctuating between 1.1000 and 1.0610. The Federal Reserve’s anticipated rate cuts later this year could drive EUR/USD closer to the upper end of this range. Additionally, the upcoming US elections may introduce volatility depending on the economic policies of the winning party.
GBP/USD: The UK’s persistent inflation has tightened the Bank of England’s monetary policy. A delay in rate cuts could push GBP/USD lower toward the 1.2540 and 1.2340 support levels. Conversely, a break above 1.3100 resistance could signal upward momentum.
USD/JPY: This pair is poised for significant movement due to potential monetary policy changes by the Bank of Japan and the Federal Reserve. USD/JPY could reach the 140.20 level, making it a focus for traders looking to capitalise on central bank policy shifts.
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Stocks: NVIDIA, Morgan Stanley, Exxon
NVIDIA: Despite recent gains in AI and tech stocks, NVIDIA may see a correction toward the $100 mark before a potential rebound. Should market sentiment turn risk-on due to a Federal Reserve rate cut, NVIDIA could retest the $135 level in H2 2024.
Morgan Stanley: Financial stocks like Morgan Stanley generally perform well in a lower interest rate environment. The bank’s stock has shown an upward trend, potentially reaching $110 by year-end, driven by the anticipated rate cuts.
Exxon: With ongoing tensions in the Middle East and global solid oil demand, Exxon’s stock may continue its upward trajectory. The energy giant could hit the $150 mark as the market responds to geopolitical factors and supply dynamics.
Cryptocurrencies: BTC/USD, ETH/USD
BTC/USD: Bitcoin has experienced typical market cycles, with post-halving bullishness followed by sell-offs due to global economic concerns. A strong support zone exists between €48088.47 and €44942.50, with a breach below this range signalling a bear market. The resistance is currently positioned at €61436.40 to €64447.54.
Commodities: XAU/USD
Gold (XAU/USD): Gold remains a key instrument in times of monetary easing. The Federal Reserve’s rate cuts could push gold toward the €2247.13 level. However, investors should be cautious of the historically bearish September, which may trigger a correction before a potential rally.
Indices: US500, JP225
US500 (S&P 500): The S&P 500 might face a correction in H2 2024, especially with historically weak performances in September and October. The 5,700 resistance and 4,900 support levels are crucial, particularly in the context of the US elections and possible interest rate changes.
JP225 (Nikkei 225): Japanese equities have been impacted by the Bank of Japan’s monetary policy changes and overall market risk aversion. The index could slide below €27235.15 toward support at €23819.52. On the upside, the resistance zone lies between €37032.62 and €38201.13.
Navigating the Market with ICM212
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