Technical Analysis Report By Our Expert – 13 September 2022
13 Sep 2022
OIL SLIPS DUE TO LOW DEMAND FEAR
Asian Pacific stock markets rose slightly on Tuesday. The Shanghai Composite is up 0.07% at 3,264.33. Overall, the Singapore MSCI is up 0.99% at 299.45. Over in Hong Kong, the Hang Seng Index is up 0.40% at 19,438.00. In Japan, the Nikkei 225 is up 0.50% at 28,400.00, while the Topix index is up 0.43% at 1966.00. South Korea’s Kospi is up 2.87% at 2,452.69. Australia S&P/ASX 200 up 0.71% at 7013.70.
Top News of the Day:
Oil prices fell in choppy trade on Tuesday as traders feared more headwinds to demand from COVID lockdowns in China, with a focus now turning to the OPEC’s monthly outlook report due later in the day.
A series of COVID lockdowns in China, the world’s largest crude importer, has spurred a severe decline in oil imports to the country this year, threatening to turn Chinese oil demand negative.
Market Summary as per 12/09/2022:
European equities Monday closing. The DAX futures contract in Germany traded up 2.40% at 13,402.27, CAC 40 futures up 1.95% at 6333.60 and the UK 100 futures contract in the U.K. up 1.66% at 7,473.04.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.71% at 32381.35. The S&P 500 up 1.06% at 4110.42 and the Nasdaq 100 up 1.20% at 12739.72, NYSE closes up 1.06% at 15352.18.
Top Market News Today:
In the Forex market, GBPUSD up 0.38% at 1.1722. The USDJPY down 0.46% at 142.168. The USDCHF down 0.29% at 0.9504. EURUSD up 0.26% at 1.0148, EUR/GBP down 0.04% at 0.8657. The USD/CNY down 0.04% at 6.9213 at the time of writing.
In the Commodity market U.S. Gold futures down 0.13% at $1,722.66. Elsewhere, Silver futures down 0.69% at $19.676 per ounce, Platinum up 0.02% at $904.21 per ounce, and Palladium down 3.55% at $2184.11.
Crude Oil mix on Tuesday; Brent Crude Oil down 0.08% at $94.12 per barrel while U.S. West Texas Intermediate (CLc1) up 0.11% at $87.69.
In the Cryptocurrency Markets, Bitcoin at 22465.00 up 0.04%, Ethereum up 0.35% at 1723.00, Litecoin at 61.63 up 0.42%, at the time of writing.
Top Market Segment to Watch Out Today:
GOLD: Gold prices moved little on Tuesday, but held on to recent gains as investors awaited more signs that U.S. inflation was moving away from peaks hit this year.
U.S. CPI inflation data, which is due at 8:30 ET (12:30 GMT) on Tuesday, is expected to show inflation eased to an annual rate of 8.1% in August, from the prior month’s reading of 8.5%
US: The Federal Reserve’s recent willingness to endorse rather than push back against aggressive rate hike bets took many by surprise, and now some on Wall Street believe that a 75-basis-point hike is firmly on the table even if Tuesday’s data shows cooling inflation.
Morgan Stanley said in a recent note that it was expecting Fed members to “dial down the cadence of monetary tightening to 50bps at the September meeting,” but now believes “75bps is now the most likely outcome for September, even though the August CPI print is still outstanding.”
Inflation is expected to have slowed by 0.1% in August from July, and slowed to 8.1% in the 12 months through August from 8.5%, weighed down by falling oil prices.
Core inflation, however, which excludes volatile food and energy prices, and is more indicative of underlying price pressures is expected to have remained steady at 0.3% in August, but risen to 6.1% in the 12 months through August.
Eurozone: Fossil fuel firms may have to share their excess profits to help European households and industries cope with red-hot energy bills, a draft European Union plan showed on Monday as the cost of the West’s “energy war” with Russia took a growing toll.
Energy prices and inflation have surged as Moscow slashed gas supplies in response to Western sanctions imposed over its actions in Ukraine, prompting France to tell consumers they would have to share some of the pain while Britain is among countries facing the threat of recession.
The draft European Commission proposal, which is expected to be unveiled this week, would see the 27 EU countries introduce a ‘solidarity contribution’ for the fossil fuel industry.
Oil, gas, coal and refining companies would have to make a financial contribution based on taxable surplus profits made in the 2022 fiscal year, according to the draft, which could still change and will then need to be approved by EU governments.
Top Economic Releases Today:
- U.K. Claimant Count Change (Aug) today at 02:00 this time estimated -13.2K, previously which was 14.5K.
- GERMANY CPI (MoM) (Aug) today at 02:00 this time estimated 0.30%, previously which was 0.90%.
- U.S. Core CPI (MoM) (Aug) today at 08:30 this time estimated 0.30%previously which was 0.30%.
- NEW ZEALAND Current Account (QoQ) (Q2) today at 18:45 this time estimated -4.70B, previously which was -6.14B.
- JAPAN Core Machinery Orders (MoM) (Jul) today at 19:50 this time estimated -0.80%, previously which was 0.90%.
GBPUSD Technical Analysis
TRADE SUGGESTION- BUY AT 1.1705, TAKE PROFIT AT 1.1757 AND STOP LOSS AT 1.1644
EURUSD Technical Analysis
TRADE SUGGESTION- BUY AT 1.0141, TAKE PROFIT AT 1.0178 AND STOP LOSS AT 1.0119
EURGBP Technical Analysis
TRADE SUGGESTION- BUY AT 0.8654, TAKE PROFIT AT 0.8675 AND STOP LOSS AT 0.8628
EURJPY Technical Analysis
TRADE SUGGESTION- BUY AT 144.323, TAKE PROFIT AT 144.719 AND STOP LOSS AT 144.131
HANG SENG Technical Analysis
TRADE SUGGESTION- SELL AT 19321.00 TAKE PROFIT AT 19225.00 AND STOP LOSS AT 19429.00
WTI CRUDE OIL Technical Analysis
TRADE SUGGESTION- SELL AT 88.41 TAKE PROFIT AT 86.07 AND STOP LOSS AT 90.39
GOLD Technical Analysis
TRADE SUGGESTION- BUY AT 1723.94, TAKE PROFIT AT 1732.20 AND STOP AT 1719.90
BITCOIN Technical Analysis
TRADE SUGGESTION- BUY AT 22245.00 TAKE PROFIT AT 22763.21 AND STOP AT 21841.56