Technical Analysis Report, Economic News & Price Chart – 26 April 2022

Technical Analysis Report, Economic News & Price Chart – 26 April 2022

Technical Analysis

CHINA COVID FEAR, FED RATE HIKE BETS DOLLAR TWO YEAR PEAK

Asia Pacific stocks were mostly up on Tuesday morning. The Shanghai Composite is down 0.67% at 2,908.74. Overall, the Singapore MSCI is up 0.52% at 311.00. Over in Hong Kong, the Hang Seng Index is up 1.09% at 20,014. In Japan, the Nikkei 225 is up 0.75% at 26,740.00, while the Topix index is up 0.48% at 1881.50. South Korea’s Kospi is up 0.41% at 2667.93. Australia S&P/ASX 200 down 1.94% at 7328.60.

Top News of the Day:

The dollar held near a two-year peak on Tuesday as concerns about the economic impact of China’s COVID-19 lockdowns held up the greenback’s safe-haven appeal and aggressive U.S. interest rate hike expectations kept bond yields elevated.

The dollar index, which measures the greenback against six main peers, was 0.13% lower at 101.59 after hitting a two-year peak of 101.86 overnight.

Market Summary as per 25/04/2022:

European equities Monday closing. The DAX futures contract in Germany traded down 1.54% at 13,924.17, CAC 40 futures down 2.01% at 6449.39 and the UK 100 futures contract in the U.K. down 1.88% at 7,380.55.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.70% at 34049.47. The S&P 500 up 0.57% at 4296.13 and the Nasdaq 100 up 1.32% at 13533.22, NYSE closes down 0.01% at 16054.76.

Top Market News Today:

In the Forex market, GBPUSD up 0.02% at 1.2742. The USDJPY down 0.17% at 127.908. The USDCHF up 0.04% at 0.9593. EURUSD up 0.04% at 1.0716, EUR/GBP up 0.06% at 0.8409. The USD/CNY down 0.25% at 6.542 at the time of writing.

In the Commodity market U.S. Gold futures up 0.28% at $1,903.46. Elsewhere, Silver futures up 0.82% at $23.738 per ounce, Platinum up 0.42% at $915.268 per ounce, and Palladium up 2.42% at $2198.00.

Crude Oil up on Tuesday; Brent crude oil up 0.57% at $103.04 per barrel while U.S. West Texas Intermediate (CLc1) up 0.42% at $99.01.

In the Cryptocurrency Markets, Bitcoin at 40520.00 up 0.77%, Ethereum down 0.58% at 2995.00, Litecoin at 104.07 down 0.62%, at the time of writing.

Top Market Segment to Watch Out Today:

TWITTER: Elon Musk clinched a deal to buy Twitter Inc (NYSE:TWTR) for $44 billion cash on Monday in a transaction that will shift control of the social media platform populated by millions of users and global leaders to the world’s richest person.

Twitter shares rose 5.7% on Monday to finish at $51.70. The deal represents a near 40% premium to the closing price the day before Musk disclosed, he had bought a more than 9% stake.

Economic News:

US: U.S. homebuilders will likely find it harder to raise home prices in the coming months as rising mortgage rates and inflation cut into demand, industry analysts said, potentially threatening a breakneck pace of profit growth.

D.R. Horton Inc, Lennar Corp (NYSE:LEN), PulteGroup Inc (NYSE:PHM) and other homebuilders are headed for a strong earnings season, but the U.S. housing boom is showing signs of a cooldown as sky-high inflation sets the U.S. Federal Reserve on course for aggressive rate hikes.

The rate for the 30-year fixed mortgage, the most popular U.S. home loan, climbed above 5% for the first time in more than a decade, making homes less affordable, especially for lower-income groups and first-time home buyers.

Home prices have skyrocketed since the pandemic as buyers opted for bigger homes in the suburbs, encouraged by low mortgage rates and a shift to work-from-home. Median existing house prices jumped 15% from a year earlier to an all-time high of $375,300 in March.

Eurozone: The European Central Bank should raise interest rates soon and has room for up to three hikes this year, ECB policymaker Martins Kazaks told Reuters, joining a chorus of policymakers calling for a swift exit from stimulus.

The ECB has been rolling back support at a glacial pace for months but a surge in inflation to nearly four times the ECB’s 2% target is intensifying calls to finally end a nearly decade-long foray into ultra-easy monetary policy.

Kazaks said that as part of normalisation, the ECB should eventually raise interest rates to the neutral rate, at which the central bank is neither stimulating nor holding back growth.

Top Economic Releases Today:

  1. U.S. New Home Sales (Mar) today at 10:00 this time estimated 765K, previously which was 772K. 
  2. U.S. API Weekly Crude Oil Stock today at 16:30 previously which was -4.496M.
  3. AUSTRALIA CPI (QoQ) (Q1) today at 21:30 this time estimated 1.7%, previously which was 1.3%.
  4. CANADA Manufacturing Sales (MoM) today at 9:30 previously which was 4.2%.
  5. U.S. Core Durable Goods Orders (MoM) (Mar) today at 8:30 this time estimated 0.6%, previously which was -0.6%.

TECHNICAL SUMMARY

GBPUSD Technical Analysis

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.2718, TAKE PROFIT AT 1.2706 AND STOP LOSS AT 1.2733

EURUSD Technical Analysis

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0688, TAKE PROFIT AT 1.0685 AND STOP LOSS AT 1.0697

GBPJPY Technical Analysis

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 162.430, TAKE PROFIT AT 161.121 AND STOP LOSS AT 163.591

CHFJPY Technical Analysis

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 133.264, TAKE PROFIT AT 132.486 AND STOP LOSS AT 133.860

EURO STOXX 50 Technical Analysis

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 3716.00 TAKE PROFIT AT 3698.00 AND STOP LOSS AT 3734.00

WTI CRUDE OIL Technical Analysis

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 98.18 TAKE PROFIT AT 95.39 AND STOP LOSS AT 99.92

GOLD Technical Analysis

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1896.57, TAKE PROFIT AT 1885.75 AND STOP AT 1903.95

BITCOIN Technical Analysis

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 40548.13 TAKE PROFIT AT 39484.05 AND STOP AT 41470.19

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