Technical Analysis Report – 12 July 2022

Technical Analysis Report – 12 July 2022

Wall Street

Wall Street declines in response to economic data & EARNINGS

Asia-Pacific stocks were mostly down on Tuesday morning. The Shanghai Composite is down 0.92% at 3,282.97. Overall, the Singapore MSCI is down 1.65% at 285.65. Over in Hong Kong, the Hang Seng Index is down 1.21% at 20,898. In Japan, the Nikkei 225 is down 1.39% at 26,280.00, while the Topix index is down 1.44% at 1878.50. South Korea’s Kospi is down 0.96% at 2,317.76. Australia S&P/ASX 200 up 0.06% at 6606.30.

Top News of the Day:

U.S. stocks lost ground on Monday as a lack of catalysts left market participants warily embarking on a week back-end loaded with crucial inflation data and the unofficial beginning to second-quarter earnings season.

Market leading growth stocks pulled all three major U.S. stock indexes into negative territory, with risk-off sentiment exacerbated by Macau’s first casino shutdown in over two years to curb the spread of COVID-19.

Market Summary as per 11/07/2022:

European equities Monday closing. The DAX futures contract in Germany traded down 1.40% at 12,832.44, CAC 40 futures down 0.36% at 5974.56 and the UK 100 futures contract in the U.K. down 0.24% at 7,179.15.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.52% at 31173.85. The S&P 500 down 1.15% at 3854.44 and the Nasdaq 100 down 2.19% at 11860.28, NYSE closes down 0.96% at 14502.43.

Top Market News Today:

In the Forex market, GBPUSD down 0.31% at 1.1854. The USDJPY down 0.12% at 137.252. The USDCHF up 0.19% at 0.9845. EURUSD down 0.25% at 1.0013, EUR/GBP up 0.10% at 0.8450. The USD/CNY up 0.17% at 6.7295 at the time of writing.

In the Commodity market U.S. Gold futures up 0.07% at $1,734.61. Elsewhere, Silver futures down 0.56% at $18.995 per ounce, Platinum down 1.95% at $854.50 per ounce, and Palladium down 1.73% at $2127.50.

Crude Oil down on Tuesday; Brent Crude Oil down 1.32% at $104.84 per barrel while U.S. West Texas Intermediate (CLc1) down 1.81% at $99.17.

In the Cryptocurrency Markets, Bitcoin at 19800.00 down 3.20%, Ethereum down 5.71% at 1073.00, Litecoin at 48.50 down 0.41%, at the time of writing.

Top Market Segment to Watch Out Today:

CRUDE OIL: Oil prices fell on Tuesday as fresh COVID-19 curbs in China, the world’s biggest crude importer, and fears of a global economic slowdown weighed on the outlook for fuel demand.

Economic News:

US: U.S. Treasury Secretary Janet Yellen and Japanese Finance Minister Shunichi Suzuki agreed on Tuesday to further strengthen bilateral ties and work together to address rising food and energy prices exacerbated by Russia’s war in Ukraine.

They said the war had increased exchange rate volatility, which could have adverse implications for economic and financial stability, and pledged to continue to consult closely on foreign exchange markets and “cooperate as appropriate” on currency issues, in line with their commitments as part of the Group of Seven (G7) and Group of 20 economies.

The two leaders also urged China and other non-Paris Club creditors to cooperate “constructively” in working out debt treatments for low-income countries facing debt distress, and underscored the need for coordination to ensure fair burden-sharing among creditors of Sri Lanka and other vulnerable middle-income countries.

Eurozone: UK retailers reported another drop in sales as record-high inflation kept consumers from spending on discretionary products and services.

The British Retail Consortium said households are reining in spending, with many either downgrading to cheaper brands or slashing items from their grocery lists altogether. The industry group’s measure of retail sales declined by 1.3% from a year ago in the period through July 2 after a 1.5% drop the month before.

“Sales volumes are falling to a rate not seen since the depths of the pandemic,” said Helen Dickinson, chief executive officer of BRC.

Barclaycard, which manages about a third of the credit and debit card purchases in the UK, said spending in supermarkets fell 0.8% from a year prior while outlays on essentials increased by 4.4%. In a separate report, it also found that spending on non-essentials slowed sharply.

Almost half of consumers have begun to reduce their energy and water consumption to cope with rising bills. Utility costs have soared 40% from a year ago, according to Barclaycard. That’s reducing the money consumers have for other items.

Top Economic Releases Today:

  1. U.S. API Weekly Crude Oil Stock today at 16:30 previously which was 3.825M. 
  2. NEW ZEALAND RBNZ Interest Rate Decision today at 22:00 this time estimated 2.50%, previously which was 2.00%.
  3. GERMANY ZEW Economic Sentiment (Jul) today at 5:00 this time estimated -38.30, previously which was -28.00.
  4. CHINA Trade Balance (USD) (Jun) today at 23:00 this time estimated 75.70B, previously which was 78.76B.
  5. U.K. BoE Gov Bailey Speaks today at 13:00.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.1821, TAKE PROFIT AT 1.1800 AND STOP LOSS AT 1.1859

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0003, TAKE PROFIT AT 0.9990 AND STOP LOSS AT 1.0011

USDJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 137.215, TAKE PROFIT AT 137.429 AND STOP LOSS AT 137.125

USDCHF

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 0.9839, TAKE PROFIT AT 0.9873 AND STOP LOSS AT 0.9797

EURO STOXX 50

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 3452.00 TAKE PROFIT AT 3420.00 AND STOP LOSS AT 3475.00

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 101.67 TAKE PROFIT AT 99.33 AND STOP LOSS AT 103.11

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1736.50, TAKE PROFIT AT 1731.71 AND STOP AT 1743.79

RIPPLE

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 0.3022 TAKE PROFIT AT 0.2874 AND STOP AT 0.3249

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