Technical Analysis Report, Economic News & Price Chart – 11 May 2022

Technical Analysis Report, Economic News & Price Chart – 11 May 2022

Technical Analysis

10-Yr Note Yield Dropped from more than a 3Yr high

Asia Pacific stocks were mostly up on Wednesday morning. The Shanghai Composite is up 0.94% at 3,064.52. Overall, the Singapore MSCI is down 0.48% at 291.30. Over in Hong Kong, the Hang Seng Index is up 1.69% at 19,805. In Japan, the Nikkei 225 is down 0.08% at 26,250.00, while the Topix index is down 0.83% at 1851.50. South Korea’s Kospi is down 0.17% at 2592.27. Australia S&P/ASX 200 up 0.19% at 7064.70.

Top News of the Day:

The S&P 500 and Nasdaq ended higher on Tuesday, with big growth shares rising after the previous day’s selloff as Treasury yields tumbled. Bank shares fell along with yields. The benchmark 10-year note yield dropped from more than a three-year high to below 3%.

The Dow also ended lower, and the day’s trading was choppy, with major indexes moving between gains and losses as investors were nervous ahead of the release of Wednesday’s U.S. consumer price index data and Thursday’s producer prices data.

Market Summary as per 10/05/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded up 1.15% at 13,534.74, CAC 40 futures up 1.10% at 6184.12 and the UK 100 futures contract in the U.K. up 0.44% at 7,274.20.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.26% at 32160.75. The S&P 500 up 0.25% at 4001.04 and the Nasdaq 100 up 1.30% at 12345.86, NYSE closes down 0.21% at 15025.74.

Top Market News Today:

In the Forex market, GBPUSD up 0.20% at 1.2336. The USDJPY down 0.24% at 130.123. The USDCHF down 0.20% at 0.9934. EURUSD up 0.21% at 1.0548, EUR/GBP up 0.06% at 0.8550. The USD/CNY down 0.18% at 6.7223 at the time of writing.

In the Commodity market U.S. Gold futures up 0.40% at $1,845.36. Elsewhere, Silver futures up 1.85% at $21.633 per ounce, Platinum up 1.30% at $977.50 per ounce, and Palladium up 1.04% at $2089.00.

Crude Oil up on Wednesday; Brent crude oil up 3.28% at $104.84 per barrel while U.S. West Texas Intermediate (CLc1) up 2.85% at $100.96.

In the Cryptocurrency Markets, Bitcoin at 30462.51 down 1.73%, Ethereum down 2.51% at 2283.26, Litecoin at 76.01 down 5.15%, at the time of writing.

Top Market Segment to Watch Out Today:

TESLA: Tesla (NASDAQ:TSLA) Inc on Wednesday made its first exports from China since reopening its Shanghai factory on April 19, as a shipment of 4,767 cars left for Slovenia, the government-backed media outlet Shanghai Observer reported.

The Glovis Splendor vehicle carrier left port early on Wednesday, bound for the Slovenian port of Koper, according to the Shanghai-based news outlet. Tesla has also arranged for 4,100 cars to be shipped on Friday, it said, adding that the automaker aims to export 300,000 cars from Shanghai in 2022.

Economic News:

US: In the wake of the 50-basis-point interest rate hike by an increasingly hawkish Federal Reserve, markets have gyrated wildly ahead of this week’s U.S. economic data, which will be closely parsed for signs that inflation is peaking.

Price growth has soared to the highest level since the early 1980s due to the collision of a post-pandemic demand boom and a gummed up global supply chain, and has stoked fears that the Fed’s aggressive attempts to rein it in could lead the economy into recession.

The Labor Department’s jobs report on Friday provided the first potential sign of a plateau, with monthly wage growth decelerating to 0.3% from 0.5% and holding steady at 5.5% year-on-year.

Eurozone: The European Central Bank should raise interest rates from record lows in July but could already outline its rate expectations for the coming months at its June 9 meeting, ECB policymaker Madis Müller said.

With euro zone inflation at a record high 7.5%, nearly four times the ECB’s target, pressure is growing on the bank to claw back stimulus and several policymakers are pushing for faster “normalisation”, including the end of asset buys and rate hikes.

In the first step, bond purchases need to end in early July, as stipulated by the bank’s guidance, but bringing this move forward is also possible, according to Müller, who is Estonia’s central bank governor.

Top Economic Releases Today:

  1. U.S. Crude Oil Inventories today at 10:30 this time estimated -0.457M, previously which was 1.302M. 
  2. JAPAN Adjusted Current Account today at 19:50 previously which was 0.52T.
  3. AUSTRALIA Building Approvals (MoM) today at 21:30 previously which was -18.5%.
  4. U.S. Core CPI (MoM) (Apr) today at 8:30 this time estimated 0.4%, previously which was 0.3%.
  5. GERMANY CPI (MoM) (Apr) today at 2:00 this time estimated 0.8%, previously which was 2.5%.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.2335, TAKE PROFIT AT 1.2300 AND STOP LOSS AT 1.2368

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0553, TAKE PROFIT AT 1.0502 AND STOP LOSS AT 1.0589

USDJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 129.952, TAKE PROFIT AT 130.494 AND STOP LOSS AT 129.550 

USDCHF

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 0.9919, TAKE PROFIT AT 0.9964 AND STOP LOSS AT 0.9892

NASDAQ 100

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 12434.96 TAKE PROFIT AT 12288.09 AND STOP LOSS AT 12516.90

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 102.60 TAKE PROFIT AT 99.81 AND STOP LOSS AT 104.45

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1849.26, TAKE PROFIT AT 1835.21 AND STOP AT 1861.50

ETHEREUM

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 2322.25 TAKE PROFIT AT 2252.30 AND STOP AT 2374.67

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