Technical Analysis Report – 03 February 2021

Technical Analysis Report – 03 February 2021

Asia Pacific stocks were mixed on Wednesday morning. The Shanghai composite is down 0.03% at 3,532.79. Overall, the Singapore MSCI up 0.41% at 331.85. Over in Hong Kong, the Hang Seng Index down 0.43% to 29,103. In Japan, the Nikkei 225 up 0.85% at 28,600, while the Topix index is up 0.92% at 1869.0. South Korea’s Kospi up 1.03% to 3128.54. Australia S&P/ASX 200 up 0.92% at 6824.6.

European equities Tuesday closing. The DAX futures contract in Germany traded 1.56% up at 13835.16, CAC 40 futures up 1.86% at 5563.1 and the UK 100 futures contract in the U.K. up 0.78% at 6,516.7.

In U.S. on Wall Street, the Dow Jones Industrial Average closed 1.57% up at 30687.5 the S&P 500 up 1.39% to 3826.3 and the Nasdaq 100 up 1.56% at 13456.1, NYSE closes at 14768.57 up 1.18%.

In the Forex market, GBPUSD down 0.12% at 1.36496. The USDJPY up 0.08% at 105.041. The USDCHF up 0.11% at 0.89820. EURUSD down 0.04% at 1.20382, EUR/GBP up 0.10% at 0.88196. The USD/CNY up 0.06% at 6.4590, at the time of writing.

In the commodity market U.S. Gold futures up 0.03% at $1,837.74. Elsewhere, Silver futures up 0.36% to $26.76 per ounce, Platinum down 0.07% at $1092.30 per ounce, and Palladium up 0.18% to $2,250.

Crude Oil mix on Wednesday; Brent crude oil down 0.21% to $57.66 barrel while U.S. West Texas Intermediate (CLc1) is up 1.66% at $55.15.

In the Cryptocurrency Markets, BTCUSD at 36646.71 up 3.17%, Ethereum at 1552.87 up 2.74%, Litecoin at 153.58 up 7.76%, at the time of writing.

TOP STOCKS TO WATCH OUT TODAY:

MORGAN STANLEY up 4.847% at $70.95, VERTEX PHARMACY down 6.23% at $217.33, DISCOVERY Inc. down 4.843% to $40.08, WORKDAY Inc. up 8.902% to $257.76, JD.Com Inc. up 4.547% to $95.42, TESLA Inc. up 3.927% at $872.79.

Economic news:

US: Excess liquidity in the short-term U.S. lending market recently knocked overnight interest rates to almost zero, and risks pushing the federal funds rate to negative territory, a scenario that could cause disruptions in money markets.

The fed funds rate is the rate banks charge each other for overnight loans to meet reserves required by the Federal Reserve.

A sub-zero effective fed funds rate would imply that banks are willing to pay to lend funds to each other, and indicate the market expects the Fed to take interest rates below zero. Even if negative rates are a long shot, analysts said low short-term rates are not ideal either as they suggest a potentially deflationary environment.

That said, the Fed has tools to lift short-term rates, such as raising the rate it pays banks for excess reserves parked at the central bank. The so-called IOER rate also influences the fed funds target. Analysts said if the fed funds rate falls below 0.05% for consecutive sessions, a Fed response is likely to follow.

Eurozone: The European Commission is proposing to speed up the production of COVID-19 vaccines by helping to upgrade existing pharmaceutical plants or build new ones, according to a letter seen by Reuters on Tuesday.

The letter, from European Commission President Ursula von der Leyen and Portuguese Prime Minister Antonio Costa, whose country holds the rotating EU presidency, comes as the bloc struggles with a shortage of vaccines largely arising from production issues.

“The Commission should deploy all means necessary to meet Europe’s needs, be it through additional investing in upgrading or repurposing existing plants or building new ones,” the joint letter to EU leaders said.

Important Data: UK Composite PMI (Jan) today at 4:30 this time estimated 40.6, previously which was 40.6. EURO ZONE CPI (YoY) (Jan) today at 5:00 this time estimated 0.5%, previously which was -0.3%. US ADP Nonfarm Employment Change (Jan) today at 8:15 this time estimated 49K, previously which was -123K. AUSTRALIA Trade Balance (Dec) today at 19:30 previously which was at 5.022B.

TECHNICAL SUMMARY

GBPUSD

CRUDE OIL
CRUDE OIL

TRADE SUGGESTION- SELL AT 1.3647, TAKE PROFIT AT 1.36207 AND STOP LOSS AT 1.3669

EURUSD

CRUDE OIL
CRUDE OIL

TRADE SUGGESTION- SELL AT 1.20326, TAKE PROFIT AT 1.20084 AND STOP LOSS AT 1.20527

EURAUD

CRUDE OIL
CRUDE OIL

TRADE SUGGESTION- SELL AT 1.5810, TAKE PROFIT AT 1.5788 AND STOP LOSS AT 1.5825

GBPJPY

CRUDE OIL
CRUDE OIL

TRADE SUGGESTION- BUY AT 143.365, TAKE PROFIT AT 143.620 AND STOP LOSS AT 143.276

DJ EURO STOXX 50

CRUDE OIL
CRUDE OIL

TRADE SUGGESTION- BUY AT 3603 TAKE PROFIT AT 3618 AND STOP LOSS AT 3594

WTI CRUDE OIL

Technical Analysis of the Financial Markets
Technical Analysis of the Financial Markets

TRADE SUGGESTION- BUY AT 55.07 TAKE PROFIT AT 56.00 AND STOP LOSS AT 54.57

GOLD

Technical Analysis of the Financial Markets
Technical Analysis of the Financial Markets

TRADE SUGGESTION- SELL AT 1850.00, TAKE PROFIT AT 1842.32 AND STOP AT 1856.29

BTC USD

Technical Analysis of the Financial Markets
Technical Analysis of the Financial Markets

TRADE SUGGESTION- BUY AT 36612.97 TAKE PROFIT AT 37893.87 AND STOP AT 35767.49

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