FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 09 November 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 09 November 2022

Technical Analysis

Wall Street ends higher DUE TO U.S. MIDTERMS

Asian stocks saw choppy trade on Wednesday. The Shanghai Composite is down 0.36% at 3,053.57. Overall, the Singapore MSCI is down 0.27% at 280.85. Over in Hong Kong, the Hang Seng Index is down 1.44% at 16,331.00. In Japan, the Nikkei 225 is down 0.72% at 27,690.00, while the Topix index is down 0.66% at 1946.00. South Korea’s Kospi is up 0.82% at 2,418.70. Australia S&P/ASX 200 up 0.58% at 6999.30.

Top News of the Day:

Wall Street ended higher on Tuesday during voting in midterm elections that will determine control of the U.S. Congress, with investors betting on a political stalemate that could prevent major policy changes.

All 435 House of Representative seats and some 35 seats in the Senate are on the ballot, with experts saying there may be days of waiting before it is clear who won certain races.

Market Summary as per 08/11/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded up 1.15% at 13,688.75, CAC 40 futures up 0.39% at 6441.51 and the UK 100 futures contract in the U.K. up 0.08% at 7306.13.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.02% at 33160.84. The S&P 500 up 0.56% at 3828.10 and the Nasdaq 100 up 0.75% at 11059.50, NYSE closes up 0.54% at 14889.29.

Top Market News Today:

In the Forex market, GBPUSD down 0.04% at 1.1534. The USDJPY up 0.10% at 145.825. The USDCHF up 0.26% at 0.9871. EURUSD down 0.09% at 1.0061, EUR/GBP up 0.01% at 0.8723. The USD/CNY down 0.04% at 7.2491 at the time of writing.

In the Commodity market U.S. Gold futures down 0.19% at $1,708.93. Elsewhere, Silver futures down 0.38% at $21.257 per ounce, Platinum up 0.71% at $1003.00 per ounce, and Palladium down 0.01% at $1919.26.

Crude Oil mix on Wednesday; Brent Crude Oil up 0.06% at $95.14 per barrel while U.S. West Texas Intermediate (CLc1) down 0.06% at $87.810.

In the Cryptocurrency Markets, Bitcoin at 18250.00 up 0.94%, Ethereum down 2.56% at 1300.00, Litecoin at 58.53 up 1.30%, at the time of writing.

Top Market Segment to Watch Out Today:

TSMC Ltd.: Taiwan Semiconductor Manufacturing Co Ltd is preparing a multibillion-dollar factory investment in Arizona in the United States, the Wall Street Journal reported on Wednesday, citing sources. The scale of the investment is expected to be roughly similar to the $12 billion it committed two years ago, according to the report.

Economic News:

US: The U.S. Treasury has broadened its justification for sanctioning virtual currency mixing service Tornado Cash on allegations it supports North Korea, despite criticism from users that the Treasury is targeting a service and not an organization.

In a press release, the Treasury said its Office of Foreign Asset Control had “delisted and simultaneously redesignated” the service, changing its justification from the allegation that it supported North Korean hackers to the allegation that it supported the North Korean regime more generally.

The move – which a Treasury representative said reflected the service’s support for the North Korean government – still leaves Americans unable to send and receive money through the service.

The ban on Tornado Cash was first imposed in August on the grounds that the Ethereum coin mixing service – which can be and has been used to obscure the proceeds of cybercrime – was being used by hackers such as North Korea’s notorious Lazarus Group to launder stolen funds.

Euro Zone: Germany’s short-dated yields hit fresh multi-year highs on Tuesday, with investor focus on central banks’ fight against inflation ahead of U.S. consumer price data that will drive expectations for the outlook for Federal Reserve policy.

European Central Bank policymaker Joachim Nagel told a German banking conference on Tuesday that the central bank could not let up its fight against high inflation in the euro zone and that large rate hikes were necessary.

Yields on the German two-year Schatz, more sensitive to policy rates, were up 2 basis points (bps) to 2.21% after reaching its highest since December 2008 at 2.25%.

Yields on the 10-year Bund, which serves as a benchmark for the wider region, fell 5 bps to 2.27%.

The yield curve was flattening with the spread between German 10-year and 2-year yields at its lowest level since Sept. 22.

Top Economic Releases Today:

  1. U.S. Crude Oil Inventories today at 10:30 this time were estimated 1.360M, previously which was -3.115M.
  2. 00 this time estimated -0.10%, previously which was 0.10%.
  3. GERMANY  Buba Wuermeling Speaks today at 12:00.

4. JAPAN Foreign Bonds Buying at 18:50 previously which was -1,172.50B.

5. U.K. MPC Member Haskel Speaks today at 8:00.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.1536, TAKE PROFIT AT 1.1635 AND STOP LOSS AT 1.1492

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.0063, TAKE PROFIT AT 1.0093 AND STOP LOSS AT 1.0047

EURGBP TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 0.8720, TAKE PROFIT AT 0.8688 AND STOP LOSS AT 0.8742

EURJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 146.698, TAKE PROFIT AT 147.405 AND STOP LOSS AT 146.183

S&P 200 TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 6993.00 TAKE PROFIT AT 7018.00 AND STOP LOSS AT 6980.00

WTI CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 88.61 TAKE PROFIT AT 90.38 AND STOP LOSS AT 87.91

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1710.59, TAKE PROFIT AT 1720.05 AND STOP AT 1705.64

ETHEREUM TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1271.09 TAKE PROFIT AT 1181.72 AND STOP AT 1330.65

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