Technical Analysis Report, Economic News & Price Chart – 05 May 2022

Technical Analysis Report, Economic News & Price Chart – 05 May 2022

Technical Analysis

After The Fed’s Interest Rate Rise, Wall Street Closed with Strong Gains

      Asia Pacific stocks were mostly up on Thursday morning. The Shanghai Composite is up 2.41% at 3,047.06. Overall, the Singapore MSCI is up 1.64% at 315.90. Over in Hong Kong, the Hang Seng Index is up 1.04% at 20,934. In Japan, the Nikkei 225 is up 0.26% at 26,880.00, while the Topix index is up 0.18% at 1899.50. South Korea’s Kospi is down 0.11% at 2677.57. Australia S&P/ASX 200 up 0.44% at 7336.80.

Top News of the Day:

U.S. stocks ended sharply higher on Wednesday after the Federal Reserve delivered a widely expected interest-rate hike, and the S&P 500 recorded its biggest one-day percentage gain in nearly two years.

Stocks initially see-sawed after the announcement, then the indexes strengthened. The S&P 500’s advance of almost 3% was the strongest since May 18, 2020.

Market Summary as per 04/05/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 0.49% at 13,970.82, CAC 40 futures down 1.24% at 6395.68 and the UK 100 futures contract in the U.K. down 0.90% at 7,493.45.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 2.81% at 34061.07. The S&P 500 up 2.99% at 4300.16 and the Nasdaq 100 up 3.41% at 13535.71, NYSE closes up 2.48% at 16119.60.

Top Market News Today:

In the Forex market, GBPUSD down 0.11% at 1.2608. The USDJPY up 0.07% at 129.140. The USDCHF up 0.13% at 0.9734. EURUSD down 0.06% at 1.0611, EUR/GBP up 0.13% at 0.8416. The USD/CNY up 0.01% at 6.6084 at the time of writing.

In the Commodity market U.S. Gold futures up 0.82% at $1,896.77. Elsewhere, Silver futures up 0.68% at $23.115 per ounce, Platinum up 0.65% at $1000.50 per ounce, and Palladium up 0.71% at $2272.50.

Crude Oil up on Thursday; Brent crude oil up 0.72% at $110.89 per barrel while U.S. West Texas Intermediate (CLc1) up 1.00% at $107.47.

In the Cryptocurrency Markets, Bitcoin at 39634.11 down 0.10%, Ethereum up 0.08% at 2942.15, Litecoin at 106.46 up 0.18%, at the time of writing.

Top Market Segment to Watch Out Today:

FACEBOOK (META): Facebook (NASDAQ:FB) owner Meta Platforms Inc on Wednesday gave an early glimpse of its first physical store, which features a floor-to-ceiling screen for showing off games on its virtual reality headsets and rooms for testing video calling devices.

The store, set to open on May 9, is located at the main campus for Meta’s Reality Labs unit, in the Silicon Valley town of Burlingame, California. The unit is developing the hardware products the company aims to sell there, including Ray-Ban smart glasses, Portal video-calling devices and Oculus VR headsets.

Economic News:

US: The U.S. labor market showed signs of slowing in April as labor shortages increasingly affected businesses across the country, fresh data showed on Wednesday.

Private-sector payrolls rose by only 247,000 in the month through mid-April, the smallest gain in over a year, and a sharp slowdown from an upwardly-revised 479,000 in March, according to a monthly survey by payrolls processor ADP. The number was also well below consensus forecasts for a gain of 395,000.

ADP’s news comes on the same day that the Federal Reserve is expected to announce its biggest interest rate hike in 20 years. Analysts predict it will raise the target range for the fed funds rate by 50 basis points to 0.75%-1.0%.

The survey suggested that small businesses in particular are struggling to hire staff, at a time when employees are leaving their jobs for higher-paying ones in record numbers.

Eurozone: The Bank of England looks poised to raise interest rates on Thursday for the fourth time since December, the fastest increase in borrowing costs in a quarter of a century as it tries to quell the danger from the leap in inflation.

But the BoE must tread carefully to avoid a recession, even with inflation at 7% – more than three times its target – and still rising.

Last month Governor Andrew Bailey said he and his colleagues were walking a “very tight line” to steer the world’s fifth-biggest economy through the global post-pandemic inflation surge which has been aggravated by Russia’s invasion of Ukraine.

Top Economic Releases Today:

  1. GERMANY Factory Orders (MoM) (Mar) today at 2:00 this time estimated -1.1%, previously which was -2.2%.
  2. 57.60.
  3. U.S. Initial Jobless Claims today at 8:30 this time estimated 182K, previously which was 180K.
  • JAPAN Tokyo Core CPI (YoY) (Apr) today at 19:30 this time estimated 1.8%, previously which was 0.8%.
  • SWITZERLAND CPI (MoM) (Apr) today at 2:30 this time estimated 0.3%, previously which was 0.6%.

TECHNICAL SUMMARY

GBPUSD

TRADE SUGGESTION- SELL AT 1.2624, TAKE PROFIT AT 1.2564 AND STOP LOSS AT 1.2694

EURUSD

TRADE SUGGESTION- SELL AT 1.0622, TAKE PROFIT AT 1.0564 AND STOP LOSS AT 1.0630

USDJPY

TRADE SUGGESTION- BUY AT 128.974, TAKE PROFIT AT 129.644 AND STOP LOSS AT 127.779

USDCHF

TRADE SUGGESTION- BUY AT 0.9720, TAKE PROFIT AT 0.9749 AND STOP LOSS AT 0.9703

S&P 200

TRADE SUGGESTION- SELL AT 7342.00 TAKE PROFIT AT 7290.00 AND STOP LOSS AT 7375.00

WTI CRUDE OIL

TRADE SUGGESTION- BUY AT 107.94 TAKE PROFIT AT 109.72 AND STOP LOSS AT 106.84

GOLD

TRADE SUGGESTION- SELL AT 1900.80, TAKE PROFIT AT 1886.14 AND STOP AT 1912.96

ETHEREUM

TRADE SUGGESTION- BUY AT 2937.31 TAKE PROFIT AT 3023.16 AND STOP AT 2876.87

About Author