Technical Analysis Report, Economic News & Price Chart – 12 May 2022

Technical Analysis Report, Economic News & Price Chart – 12 May 2022

Technical Analysis

Strong CORE CPI, US Inflation Eased Less Than Expected in April

Asia Pacific stocks were down on Thursday morning. The Shanghai Composite is down 0.34% at 3,048.53. Overall, the Singapore MSCI is down 2.58% at 284.95. Over in Hong Kong, the Hang Seng Index is down 2.34% at 19,306. In Japan, the Nikkei 225 is down 1.83% at 25,770.00, while the Topix index is down 1.16% at 1830.00. South Korea’s Kospi is down 1.63% at 2550.08. Australia S&P/ASX 200 down 1.75% at 6941.00.

Top News of the Day:

U.S. inflation eased slightly in April but stayed close to a 40-year high, as strong price pressures in the broader economy continued to make themselves felt. The annual headline rate of inflation fell to 8.3% from 8.5%, as last year’s surge in used car prices started to drop out of the year-on-year calculations. However, that was still above the 8.1% expected.

U.S. stock futures immediately turned negative in response to the news, which reinforced expectations that the Federal Reserve will have to tighten monetary policy aggressively to bring inflation down.

Market Summary as per 11/05/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded up 2.17% at 13,828.64, CAC 40 futures up 2.50% at 6269.73 and the UK 100 futures contract in the U.K. up 1.44% at 7,347.67.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.02% at 31834.12. The S&P 500 down 1.65% at 3935.19 and the Nasdaq 100 down 3.06% at 11967.56, NYSE closes down 0.82% at 14902.14.

Top Market News Today:

In the Forex market, GBPUSD down 0.29% at 1.2213. The USDJPY down 0.55% at 129.225. The USDCHF down 0.04% at 0.9936. EURUSD down 0.01% at 1.0511, EUR/GBP up 0.32% at 0.8607. The USD/CNY up 0.65% at 6.7648 at the time of writing.

In the Commodity market U.S. Gold futures up 0.02% at $1,852.62. Elsewhere, Silver futures down 0.69% at $21.400 per ounce, Platinum down 0.45% at $992.50 per ounce, and Palladium up 0.42% at $2039.00.

Crude Oil down on Thursday; Brent crude oil down 1.47% at $105.90 per barrel while U.S. West Texas Intermediate (CLc1) down 1.40% at $102.55.

In the Cryptocurrency Markets, Bitcoin at 26491.18 down 8.65%, Ethereum down 12.87% at 1808.64, Litecoin at 56.57 down 14.40%, at the time of writing.

Top Market Segment to Watch Out Today:

BRENT CRUDE OIL: Oil prices dropped more than 1% on Thursday in a volatile week as economic concerns and recession fears dogged global financial markets, outweighing supply concerns and geopolitical tensions in Europe.

Brent crude futures slipped $1.32, or 1.2%, to $106.19 a barrel by 0646 GMT. WTI crude futures fell $1.52, or 1.4%, to $104.19 a barrel.

Economic News:

US: Online prices fell 0.5% in April and U.S. consumers pulled back on electronic commerce, possibly reflecting a change in consumer behaviour and the Federal Reserve’s efforts to curb inflation, tech firm Adobe (NASDAQ:ADBE), which monitors online prices, reported.

A surge of inflation during the pandemic reversed years in which electronic commerce had helped hold overall inflation lower. Some relief may be coming, the tech firm reported. The decline in April compared to a record 0.3% increase in March.

On a year-over-year basis, inflation for the 100 million goods monitored by Adobe fell to 2.9% in April versus 3.6% in March.

Eurozone: Britain’s economy shrank by 0.1% in March but expanded by 0.8% for the first quarter of 2022 as a whole, official figures showed on Thursday in what is likely to have been a high point for 2022 as the cost-of-living crisis increasingly bites.

Economists polled by Reuters had on average expected gross domestic product (GDP) to be flat in March and to have grown 1.0% over the first three months of this year, compared with the final quarter of 2021.

The fall in GDP was led by a 0.2% fall in output from Britain’s dominant services sector. Britain’s economy shrank by a historic 9.3% in 2020 and grew by 7.4% in 2021, the sharpest swing in output of any G7 economy during the COVID-19 pandemic.

Top Economic Releases Today:

  1. U.K. GDP (MoM) today at 2:00 this time estimated 0.0%, previously which was 0.1%. 
  2. U.K. Manufacturing Production (MoM) (Mar) today at 2:00 this time estimated -0.5%, previously which was -0.4%.
  3. U.S. Initial Jobless Claims today at 8:30 this time estimated 195K, previously which was 200K.
  4. INDIA CPI (YoY) (Apr) today at 8:00 this time estimated 7.50%, previously which was 6.95%.
  5. SWITZERLAND PPI (MoM) (Apr) today at 2:30 previously which was 0.8%.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1.2203, TAKE PROFIT AT 1.2176 AND STOP LOSS AT 1.2283

EURUSD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1.0474, TAKE PROFIT AT 1.0442 AND STOP LOSS AT 1.0501

EURGBP

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- BUY AT 0.8573, TAKE PROFIT AT 0.8591 AND STOP LOSS AT 0.8542

EURJPY

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 134.600, TAKE PROFIT AT 134.291 AND STOP LOSS AT 135.081

S&P 200

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 6929.00 TAKE PROFIT AT 6907.00 AND STOP LOSS AT 6949.00

WTI CRUDE OIL

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 103.47 TAKE PROFIT AT 102.09 AND STOP LOSS AT 105.14

GOLD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1851.25, TAKE PROFIT AT 1843.10 AND STOP AT 1861.33

LITECOIN

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 57.79 TAKE PROFIT AT 53.02 AND STOP AT 62.51

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