Technical Analysis Report, Economic News & Price Chart – 24 May 2022

Technical Analysis Report, Economic News & Price Chart – 24 May 2022

BCHUSD Price Chart Technical Analysis

Big Interest Rate Hikes in June and July?

Asia Pacific stocks were mostly down on Tuesday morning. The Shanghai Composite is down 1.82% at 3,089.60. Overall, the Singapore MSCI is down 1.14% at 294.70. Over in Hong Kong, the Hang Seng Index is down 1.91% at 20,034. In Japan, the Nikkei 225 is down 1.15% at 26,740.00, while the Topix index is down 1.05% at 1878.50. South Korea’s Kospi is down 1.57% at 2605.87. Australia S&P/ASX 200 down 0.28% at 7128.80.

Top News of the Day:

U.S. central bankers broadly back two more big interest rate hikes in June and July, but what happens after is a matter of intense internal debate that turns in large part on differing views of how price pressures will play out in months ahead.

To Atlanta Fed President Raphael Bostic, once the Federal Reserve has delivered half-of-a-percentage point rate hikes as Chair Jerome Powell has signalled, “a pause in September might make sense.”

Market Summary as per 23/05/2022:

European equities Monday closing. The DAX futures contract in Germany traded up 1.38% at 14,175.40, CAC 40 futures up 1.17% at 6358.74 and the UK 100 futures contract in the U.K. up 1.67% at 7,513.44.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.98% at 31880.25. The S&P 500 up 1.86% at 3973.76 and the Nasdaq 100 up 1.68% at 12034.28, NYSE closes up 1.74% at 15342.95.

Top Market News Today:

In the Forex market, GBPUSD down 0.07% at 1.2579. The USDJPY down 0.26% at 127.560. The USDCHF up 0.08% at 0.9758. EURUSD down 0.14% at 1.0674, EUR/GBP down 0.08% at 0.8485. The USD/CNY up 0.41% at 6.6789 at the time of writing.

In the Commodity market U.S. Gold futures down 0.02% at $1,852.60. Elsewhere, Silver futures down 0.19% at $21.744 per ounce, Platinum up 0.68% at $949.00 per ounce, and Palladium up 0.33% at $2003.50.

Crude Oil down on Tuesday; Brent crude oil down 1.20% at $111.98 per barrel while U.S. West Texas Intermediate (CLc1) down 1.54% at $108.22.

In the Cryptocurrency Markets, Bitcoin at 29175.00 up 0.55%, Ethereum up 0.31% at 1977.38, Litecoin at 68.84 down 0.15%, at the time of writing.

Top Market Segment to Watch Out Today:

BRENT CRUDE OIL: Oil prices fell by more than $1 on Tuesday as concerns over a possible recession and China’s COVID-19 curbs outweighed an expectation of tight global supply and a pick-up in fuel demand with the U.S. summer driving season.

Brent crude futures for July fell $1.34, or 1.2%, to $112.08 a barrel by 0606 GMT. U.S. West Texas Intermediate (WTI) crude futures for July delivery dropped $1.28, or 1.2%, to $109.01 a barrel.

Economic News:

US: President Joe Biden launched his plan for U.S. economic engagement in Asia on Monday, leaving it to the 13 founding countries to work out how to enforce their agreements and whether China could ever join.

Biden chose on his first trip in office to Asia to formally unveil the Indo-Pacific Economic Framework for Prosperity (IPEF), although critics said it offered scant benefit to countries in the region even before it was announced.

The White House says the deal offers no tariff relief to the countries that join, including India, Malaysia and the Philippines, but provides a way to sort through issues ranging from climate change to supply chain resilience and digital trade.

Washington has lacked an economic pillar to its Indo-Pacific engagement since former President Donald Trump quit a multinational trans-Pacific trade agreement, leaving the field open to China to expand its influence.

Biden wants the deal to raise environmental, labor and other standards across Asia. The other initial founders are Australia, Brunei, Indonesia, Japan, New Zealand, Singapore, South Korea, Thailand, Vietnam and the United States.

Eurozone: Euro zone finance ministers agreed on Monday they would gradually shift their fiscal policies from supportive this year to neutral in 2023, the chairman of the ministers Paschal Donohoe told a news conference.

Euro zone countries have been supporting their economies with public money since 2020, when the COVID-19 pandemic plunged the 19 countries sharing the euro, and the global economy, into a deep recession.

But with the return of growth and with inflation at record highs, blanket stimulation of the economy no longer made sense the ministers said, focusing more on targeted and selective support, where needed.

The policy shift declaration, echoing a pledge from March, comes as the European Commission proposed to keep EU borrowing limits suspended for one more year in 2023 to give governments room to deal with the fallout of the war in Ukraine, if needed.

Top Economic Releases Today:

  1. U.K. Composite PMI today at 4:30 this time estimated 56.50, previously which was 58.20. 
  2. U.S. New Home Sales (Apr) today at 10:00 this time estimated 750K, previously which was 763K.
  3. AUSTRALIA RBNZ Interest Rate Decision today at 22:00 this time estimated 2.00%, previously which was 1.50%.
  4. CANADA Wholesale Sales (MoM) (Mar) today at 8:30 this time estimated 0.9%, previously which was -0.4%.
  5. GERMANY Manufacturing PMI (May) today at 3:30 this time estimated 54.0, previously which was 54.6.

TECHNICAL SUMMARY

GBPUSD

TRADE SUGGESTION- BUY AT 1.2587, TAKE PROFIT AT 1.2635 AND STOP LOSS AT 1.2553

EURUSD

TRADE SUGGESTION- BUY AT 1.0726, TAKE PROFIT AT 1.0806 AND STOP LOSS AT 1.0705

USDJPY

TRADE SUGGESTION- SELL AT 127.296, TAKE PROFIT AT 126.988 AND STOP LOSS AT 127.472

USDCHF

TRADE SUGGESTION- SELL AT 0.9618, TAKE PROFIT AT 0.9596 AND STOP LOSS AT 0.9657

FTSE 100

TRADE SUGGESTION- BUY AT 7442.20 TAKE PROFIT AT 7488.90 AND STOP LOSS AT 7399.60

WTI CRUDE OIL

TRADE SUGGESTION- BUY AT 109.80 TAKE PROFIT AT 111.11 AND STOP LOSS AT 108.48

GOLD

TRADE SUGGESTION- BUY AT 1858.95, TAKE PROFIT AT 1872.81 AND STOP AT 1849.24

ETHEREUM

TRADE SUGGESTION- SELL AT 1965.79 TAKE PROFIT AT 1924.13 AND STOP AT 2046.00

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