Technical Analysis Report – 03 August 2022

Technical Analysis Report – 03 August 2022

Technical Analysis

TUESDAY CHOPPY SESSION ENDED WALL STREET LOWER

Asia-Pacific stocks rose in volatile trading on Wednesday. The Shanghai Composite is down 0.71% at 3,163.67. Overall, the Singapore MSCI is up 1.26% at 298.10. Over in Hong Kong, the Hang Seng Index is up 0.34% at 19,667.00. In Japan, the Nikkei 225 is up 0.14% at 27,710.00, while the Topix index is down 0.13% at 1927.50. South Korea’s Kospi is up 0.89% at 2,461.45. Australia S&P/ASX 200 down 0.32% at 6975.90.

Top News of the Day:

Wall Street ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan.

Pelosi said her trip demonstrated American solidarity with the Chinese-claimed self-ruled island, but China condemned that first such visit in 25 years as a threat to peace and stability

Market Summary as per 02/08/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded down 0.35% at 13,403.94, CAC 40 futures up 0.14% at 6418.53 and the UK 100 futures contract in the U.K. down 0.24% at 7,391.50.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.23% at 32396.18. The S&P 500 down 0.67% at 4091.19 and the Nasdaq 100 down 0.30% at 12901.60, NYSE closes down 0.81% at 15162.68.

Top Market News Today:

In the Forex market, GBPUSD up 0.26% at 1.2198. The USDJPY up 0.04% at 133.209. The USDCHF up 0.06% at 0.9576. EURUSD up 0.22% at 1.0188, EUR/GBP up 0.06% at 0.8353. The USD/CNY up 0.01% at 6.7506 at the time of writing.

In the Commodity market U.S. Gold futures up 0.42% at $1,767.31. Elsewhere, Silver futures down 0.25% at $19.914 per ounce, Platinum down 0.89% at $886.50 per ounce, and Palladium up 1.36% at $2086.00.

Crude Oil down on Wednesday; Brent Crude Oil down 0.07% at $99.80 per barrel while U.S. West Texas Intermediate (CLc1) down 0.02% at $93.07.

In the Cryptocurrency Markets, Bitcoin at 23054.12 up 0.23%, Ethereum up 0.30% at 1636.20, Litecoin at 58.38 down 0.09%, at the time of writing.

Top Market Segment to Watch Out Today:

TOYOTA: Toyota Motor (NYSE:TM) Corp is expected to report a double-digit drop in first-quarter profit this week, as a chip shortage and supply-chain woes forced the world’s top automaker by sales to repeatedly slash production targets.

The Japanese car maker cut its monthly production targets three times during the April-June first quarter, falling 10% behind its initial goals, due to shortages of semiconductors and the impact of COVID-19 lockdowns in China.

Economic News:

US: A trio of Federal Reserve officials from across the policy spectrum signaled on Tuesday that they and their colleagues remain resolute and “completely united” on getting U.S. interest rates up to a level that will more significantly curb economic activity and put a dent in the highest inflation since the 1980s.

Moreover, one of them – San Francisco Fed President Mary Daly – said she was “puzzled” by bond market prices that reflect investor expectations for the central bank to shift to rate cuts in the first half of next year. On the contrary, she said her expectation is the Fed will keep raising rates for now and then hold them there “for a while,” remarks that triggered a wave of selling in rate-futures markets.

In a separate appearance, Cleveland Fed President Loretta Mester struck a similarly hawkish tone, noting that inflation has yet to peak and she needs to see several months of very compelling evidence that inflation is on a sustainable path down to the central bank’s 2% goal before policymakers can ease off.

Their new uniform remarks reverberated in bond and interest rate futures markets that had emerged from last week’s meeting positioned for the central bank to dial back the pace of rate hikes.

Eurozone: European Union and U.S. officials said on Tuesday that “there should be no obstacle” to restoring banking and telecommunications services to the country’s isolated northern Tigray region.

War erupted in Tigray in November 2020 and spilled into neighbouring regions a year ago. The fighting eased in March after both sides fought to a bloody stalemate and the government declared a humanitarian truce. Amid reports of widespread hunger, the government has allowed some humanitarian aid to enter but fuel to distribute it has been severely restricted.

Services such as banking and telecommunications were cut in Tigray days after the military pulled out a year ago. They are yet to be restored.

In June, Prime Minister Abiy Ahmed’s government formed a committee to negotiate with the Tigray People’s Liberation Front (TPLF), the party that controls Tigray. The government wants talks “with no preconditions.” Tigray has called for the restoration of services to civilians first.

Top Economic Releases Today:

  1. U.S. Crude Oil Inventories today at 10:30 this time estimated -0.629M, previously which was -4.523M. 
  2. U.S. ISM Non-Manufacturing PMI (Jul) today at 10:00 this time estimated 53.50, previously which was 55.30.
  3. AUSTRALIA Trade Balance (Jun) today at 21:30 this time estimated 14.000B, previously which was 15.965B.
  4. U.K. Services PMI (Jul) today at 4:30 this time estimated 53.30, previously which was 53.30.
  5. GERMANY Services PMI (Jul) today at 3:55 this time estimated 49.20, previously which was 49.20.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1.2188, TAKE PROFIT AT 1.2234 AND STOP LOSS AT 1.2154

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0187, TAKE PROFIT AT 1.0152 AND STOP LOSS AT 1.0218

GBPJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 162.416, TAKE PROFIT AT 161.809 AND STOP LOSS AT 162.984

CHFJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 138.981, TAKE PROFIT AT 138.591 AND STOP LOSS AT 139.449

EURO STOXX 50

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 3687.00 TAKE PROFIT AT 3727.00 AND STOP LOSS AT 3660.00

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 93.23 TAKE PROFIT AT 92.88 AND STOP LOSS AT 93.43

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1766.85, TAKE PROFIT AT 1769.65 AND STOP AT 1764.64

ETHEREUM

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1631.40 TAKE PROFIT AT 1716.49 AND STOP AT 1556.36

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