Technical Analysis Report, Economic News & Price Chart – 17 May 2022

Technical Analysis Report, Economic News & Price Chart – 17 May 2022

Technical Analysis

Economic Anxieties Increase, Yields Fall & Equities Suffer

Asia-Pacific stocks were mostly up on Tuesday morning. The Shanghai Composite is up 0.47% at 3,088.00. Overall, the Singapore MSCI is down 0.44% at 292.45. Over in Hong Kong, the Hang Seng Index is up 2.64% at 20,446. In Japan, the Nikkei 225 is up 0.57% at 26,630.00, while the Topix index is up 0.22% at 1863.00. South Korea’s Kospi is up 0.92% at 2620.44. Australia S&P/ASX 200 up 0.27% at 7112.50.

Top News of the Day:

U.S. stocks closed mixed on Monday as downbeat Chinese and New York state data kindled recession fears, but the 10-year Treasury note’s yield staying firmly under 3% spurred hopes the Federal Reserve will prudently hike interest rate hikes.

Chinese retail and factory activity fell sharply in April as COVID-19 lockdowns severely disrupted supply chains while New York’s factory output slumped in May for the third time this year amid a collapse in new orders and shipments.

Market Summary as per 16/05/2022:

European equities Monday closing. The DAX futures contract in Germany traded down 0.45% at 13,964.38, CAC 40 futures down 0.23% at 6347.78 and the UK 100 futures contract in the U.K. up 0.30% at 7,486.10.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.08% at 32223.43. The S&P 500 down 0.39% at 4008.02 and the Nasdaq 100 down 1.16% at 12243.58, NYSE closes up 0.02% at 15259.81.

Top Market News Today:

In the Forex market, GBPUSD up 0.54% at 1.2385. The USDJPY up 0.12% at 129.273. The USDCHF down 0.20% at 0.9997. EURUSD up 0.25% at 1.0456, EUR/GBP down 0.26% at 0.8445. The USD/CNY down 0.39% at 6.7599 at the time of writing.

In the Commodity market U.S. Gold futures up 0.18% at $1,827.70. Elsewhere, Silver futures up 0.20% at $21.640 per ounce, Platinum up 0.05% at $945.50 per ounce, and Palladium down 0.37% at $2016.50.

Crude Oil mix on Tuesday; Brent crude oil down 0.22% at $113.63 per barrel while U.S. West Texas Intermediate (CLc1) up 0.18% at $111.65.

In the Cryptocurrency Markets, Bitcoin at 30450.00 up 2.07%, Ethereum up 3.08% at 2083.14, Litecoin at 70.90 up 5.96%, at the time of writing.

Top Market Segment to Watch Out Today:

CRUDE OIL: Oil prices inched lower on Tuesday as Hungary resisted a European Union push for a ban on Russian oil imports, a move that would tighten global supply, with investors taking profits on a recent rally.

Brent crude futures fell 11 cents, or 0.1%, to $114.13 a barrel by 0602 GMT, and U.S. West Texas Intermediate (WTI) crude futures slid 22 cents, or 0.2%, to $113.98 a barrel. Both benchmarks gained more than 2% on Monday, following a 4% jump on Friday.

Economic News:

US: The Biden administration is increasingly feeling it has little control over short-term inflation, officials say, and is looking for ways to offset the political risk from price hikes in the months leading up to November’s elections.

Data last week showed inflation still at 40-year highs, but slightly off an earlier peak. The economy and Biden’s handling of it are top issues for voters, and lowering the cost of meat, gas and other household staples is a key way Biden and his fellow Democrats could defend control of Congress in November’s midterm elections, strategists say.

But any U.S. president’s ability to cut prices in the short run-in global markets for products from oil to grains is limited, White House advisers say. Influence over supply chain bottlenecks related to China’s COVID shutdowns and Russia’s invasion of Ukraine, both driving up prices, are even further out of reach, they say.

Eurozone: The U.K. labor market tightened even further in April as the skills shortage plaguing the economy intensified.

The number of people claiming unemployment benefits fell by 56,900, the fifth month in a row that it has fallen by more than 50,000 and a bigger drop than the 42,500 expected.  The jobless rate now stands at its lowest level since the early 1970s.

The shortage of workers gave fresh impetus to wage growth, which continued to run at a rate well above what the Bank of England considers compatible with low inflation. Average earnings including bonuses rose by 7.0% on the year through April, up from a rate of 5.6% through March, and the fastest growth in seven months. Excluding bonuses, wages rose 4.2%, up from 4.1% a month earlier.

Even at their current growth rate, wages are failing to keep up with inflation, which ran at an annual clip of over 7% through April. As such, there appears to be little relief in sight from the cost-of-living crisis gripping the economy.

Top Economic Releases Today:

  1. U.S. Retail Sales (MoM) (Apr) today at 8:30 this time estimated 0.9%, previously which was 0.7%. 
  2. JAPAN GDP (QoQ) (Q1) today at 19:50 this time estimated -0.4%, previously which was 1.1%.
  3. AUSTRALIA Wage Price Index (QoQ) (Q1) today at 21:30 this time estimated 0.8%, previously which was 0.7%.
  4. NEW ZEALAND PPI Input (QoQ) (Q1) today at 18:45 previously which was 1.1%.
  5. U.S. Industrial Production (MoM) (Apr) today at 9:15 this time estimated 0.5%, previously which was 0.9%.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1.2405, TAKE PROFIT AT 1.2468 AND STOP LOSS AT 1.2369

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0463, TAKE PROFIT AT 1.0415 AND STOP LOSS AT 1.0500

EURGBP

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 0.8416, TAKE PROFIT AT 0.8394 AND STOP LOSS AT 0.8439

EURJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 135.484, TAKE PROFIT AT 134.303 AND STOP LOSS AT 136.444

DOW JONES

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 32438.00 TAKE PROFIT AT 31874.00 AND STOP LOSS AT 32811.00

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 114.64 TAKE PROFIT AT 115.86 AND STOP LOSS AT 110.58

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1826.55, TAKE PROFIT AT 1811.90 AND STOP AT 1842.94

LITECOIN

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 68.765 TAKE PROFIT AT 64.330 AND STOP AT 75.696

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