Technical Analysis Report, Economic News & Price Chart – 10 May 2022

Technical Analysis Report, Economic News & Price Chart – 10 May 2022

Technical Analysis

FEAR OF RECESSION AND SLOWDOWN IN CHINA DRAG DOWN MARKET

Asia Pacific stocks were down on Tuesday morning. The Shanghai Composite is up 0.78% at 3,026.94. Overall, the Singapore MSCI is down 2.52% at 291.90. Over in Hong Kong, the Hang Seng Index is down 2.28% at 19,413. In Japan, the Nikkei 225 is down 0.87% at 26,160.00, while the Topix index is down 1.04% at 1862.00. South Korea’s Kospi is down 0.42% at 2599.95. Australia S&P/ASX 200 down 1.21% at 7034.30.

Top News of the Day:

Asian shares fell to their lowest in nearly two years on Tuesday, as investors fretted about the toxic cocktail of rising interest rates and lower economic growth. Growing fears of recession and a slowdown in China dragged down commodity-linked currencies and oil prices, though safety flows kept the dollar near 20-year highs.

Growth worries resurfaced after central banks in the United States, Britain and Australia raised interest rates last week and investors girded for more tightening as policymakers fight soaring inflation.

Market Summary as per 09/05/2022:

European equities Monday closing. The DAX futures contract in Germany traded down 2.15% at 13,380.67, CAC 40 futures down 2.75% at 6086.02 and the UK 100 futures contract in the U.K. down 2.32% at 7,216.58.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.99% at 32245.71. The S&P 500 down 3.20% at 3991.23 and the Nasdaq 100 down 3.98% at 12187.72, NYSE closes down 3.27% at 15057.87.

Top Market News Today:

In the Forex market, GBPUSD up 0.31% at 1.2368. The USDJPY up 0.08% at 130.373. The USDCHF down 0.27% at 0.9911. EURUSD up 0.23% at 1.0582, EUR/GBP down 0.08% at 0.8553. The USD/CNY down 0.48% at 6.6971 at the time of writing.

In the Commodity market U.S. Gold futures up 0.48% at $1,862.83. Elsewhere, Silver futures up 1.28% at $22.046 per ounce, Platinum up 1.00% at $964.00 per ounce, and Palladium up 3.01% at $2153.00.

Crude Oil down on Tuesday; Brent crude oil was down 0.56% at $104.68 per barrel while U.S. West Texas Intermediate (CLc1) down 0.23% at $100.90.

In the Cryptocurrency Markets, Bitcoin is at 31946.18 up 6.06%, Ethereum is up 8.07% at 2410.60, and Litecoin is at 82.83 up 8.35%, at the time of writing.

Top Market Segment to Watch Out Today:

BAYER(OTC: BAYRY) : Agriculture and pharmaceuticals company Bayer (OTC: BAYRY) reported quarterly adjusted core earnings rose a better-than-expected 27.5% on strong gains at its seeds and pesticides business.

First-quarter earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for one-off items, came in at 5.25 billion euros ($5.55 billion), well above the average analyst estimate of 4.65 billion euros posted on the company’s website.

Economic News:

US: U.S. Treasury yields eased on Monday after the benchmark 10-year note hit fresh 3-1/2-year highs as inflation fears continued to roil markets and traders awaited consumer price data and the auction of $103 billion in new government debt later this week.

Ten-year Treasury yields fell 4.1 basis points to 3.083%, after hitting 3.203%, a level last seen in November 2018.

The equities route will keep slamming bond sentiment until investors stop taking their cue from rising yields and turn to corporate earnings as their guide, said Steven Ricchiuto, U.S. chief economist at Mizuho Securities USA LLC.

The pause in the bond market sell-off was driven by short-covering and some bargain hunting, said Tom di Galoma, managing director at Seaport Global Holdings LLC.

Eurozone: Ukraine loses $170 million every day it is cut off from access to the sea and the national export capacity had been more than halved, Prime Minister Denys Shmyhal said on Monday.

“Ninety million tonnes of agricultural produce, which Ukraine planned to export to countries in Asia, Africa, and Europe, have been blocked,” Shmyhal said in the southern port city of Odesa, speaking alongside European Council President Charles Michel.

Shmyhal said some produce had been exported on road or rail, but some other reserves remained in areas under shelling or had been captured by Russia.

Top Economic Releases Today:

  1. GERMANY ZEW Economic Sentiment (May) today at 5:00 this time estimated -42.0, previously which was -41.0. 
  2. U.S. API Weekly Crude Oil Stock today at 16:30 previously which was -3.479M.
  3. CHINA CPI (MoM) (Apr) today at 21:30 this time estimated 0.2%, previously which was 0.6%.
  4. AUSTRALIA Westpac Consumer Sentiment (May) today at 20:30 previously which was -0.9%.
  5. GERMANY ZEW Current Conditions (May) today at 5:00 this time estimated -35.0, previously which was -30.80.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.2361, TAKE PROFIT AT 1.2329 AND STOP LOSS AT 1.2378

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0570, TAKE PROFIT AT 1.0502 AND STOP LOSS AT 1.0602

GBPJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 161.155, TAKE PROFIT AT 160.236 AND STOP LOSS AT 162.054

CHFJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 131.436, TAKE PROFIT AT 131.031 AND STOP LOSS AT 131.824

CAC 40

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 6165.90 TAKE PROFIT AT 6126.30 AND STOP LOSS AT 6183.60

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 102.72 TAKE PROFIT AT 100.16 AND STOP LOSS AT 104.45

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1861.16, TAKE PROFIT AT 1852.52 AND STOP AT 1865.74

BITCOIN USD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 31867.77 TAKE PROFIT AT 31393.57 AND STOP AT 32607.57

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