Technical Analysis Report on Forex, Stocks, Crypto and Commodity – 31 May

Technical Analysis Report on Forex, Stocks, Crypto and Commodity – 31 May

Technical Analysis

Fed’s Waller Backs 50 bps Rate Hikes

Asia-Pacific stocks were mostly up on Tuesday morning. The Shanghai Composite is up 1.19% at 3,186.42. Overall, the Singapore MSCI is up 0.98% at 302.55. Over in Hong Kong, the Hang Seng Index is up 0.87% at 21,174. In Japan, the Nikkei 225 is down 0.51% at 27,260.00, while the Topix index is down 0.75% at 1909.00. South Korea’s Kospi is up 0.61% at 2685.90. Australia S&P/ASX 200 down 1.03% at 7211.20.

Top News of the Day:

The U.S. Federal Reserve should be prepared to raise interest rates by a half percentage point at every meeting from now on until inflation is decisively curbed, Fed Governor Christopher Waller said on Monday, underscoring tensions at the central bank about how aggressively to tighten policy as it battles to bring down high inflation.

Market Summary as per 30/05/2022:

European equities Monday closing. The DAX futures contract in Germany traded down 0.50% at 14,502.77, CAC 40 futures down 0.58% at 6524.61 and the UK 100 futures contract in the U.K. up 0.14% at 7,610.91.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.76% at 33212.97. The S&P 500 up 2.47% at 4158.23 and the Nasdaq 100 up 3.30% at 12681.42, NYSE closes up 1.78% at 15942.62.

Top Market News Today:

In the Forex market, GBPUSD down 0.28% at 1.2615. The USDJPY up 0.27% at 127.857. The USDCHF up 0.40% at 0.9606. EURUSD down 0.28% at 1.0745, EUR/GBP up 0.06% at 0.8518. The USD/CNY down 0.02% at 6.6590 at the time of writing.

In the Commodity market U.S. Gold futures down 0.04% at $1,855.31. Elsewhere, Silver futures down 0.46% at $21.880 per ounce, Platinum up 0.47% at $964.00 per ounce, and Palladium up 2.28% at $2083.00.

Crude Oil mix on Tuesday; Brent crude oil down 1.91% at $119.34 per barrel while U.S. West Texas Intermediate (CLc1) up 1.44% at $117.36.

In the Cryptocurrency Markets, Bitcoin at 31540.00 up 9.46%, Ethereum up 12.83% at 1970.50, Litecoin at 68.59 down 0.59%, at the time of writing.

Top Market Segment to Watch Out Today:

Unilever (NYSE:UL): Unilever named Nelson Peltz as a board member on Tuesday, as it engages in talks about strategy with the American activist investor who now holds a roughly 1.5% stake in the consumer goods giant.

London-listed Unilever (NYSE:UL) said Peltz will join as a non-executive director from July and serve as a member of the board’s compensation committee.

Economic News:

US: Burning U.S. house price inflation will cool to 10%, half its current rate this year, and slow further over the next two as already very expensive homes and climbing mortgage rates side-line more prospective homebuyers, a Reuters poll found.

Supported by near-zero borrowing costs and a rush by existing homeowners to find more space, average U.S. house prices have soared by over one-third since the pandemic started. But that unexpected boom is petering out already.

The Federal Reserve has raised its key interest rate by a cumulative 75 basis points since March, with more expected this year and next, pushing up the key 30-year fixed mortgage rate above 5% in April and to its highest in more than a decade.

The May 10-30 poll of 28 property analysts showed U.S. house prices would rise 10.3% on an average this year based on the Case/Shiller index. That would be half their current pace of around 20%, the fastest since comparable records began in 2001.

Eurozone: German inflation rose to its highest level in nearly half a century in May on the back of soaring energy and food prices, strengthening the case for a big, half a percentage point European Central Bank interest rate hike in July.

Prices have risen sharply across Europe over the past year, first on supply chain problems after the pandemic, then on Russia’s war in Ukraine, suggesting that a new era of rapid price growth has swept away a decade of ultra-low inflation.

German consumer prices, harmonised to make them comparable with inflation data across the European Union, increased to 8.7% from 7.8% a month earlier, well ahead of expectations for 8%, data from the Federal Statistics Office showed on Monday.

Inflation was last time this high in the winter of 1973/1974, when the first oil crisis led to a new and difficult-to-tame inflationary cycle.

Although the ECB responded to soaring prices relatively late compared to its global peers, the bank made clear last week that interest rates must go up to stop high inflation from getting entrenched.

Top Economic Releases Today:

  1. CANADA GDP (MoM) (Mar) today at 8:30 this time estimated 0.5%, previously which was 1.1%. 
  2. U.S. CB Consumer Confidence (May) today at 10:00 this time estimated 103.9, previously which was 107.3.
  3. AUSTRALIA GDP (QoQ) (Q1) today at 21:30 this time estimated 0.7%, previously which was 3.4%.
  4. JAPAN Capital Spending (YoY) (Q1) today at 19:50 previously which was 4.3%.
  5. EURO ZONE CPI (YoY) (May) today at 5:00 this time estimated 7.7%, previously which was 7.4%.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.2608, TAKE PROFIT AT 1.2565 AND STOP LOSS AT 1.2655

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1.0741, TAKE PROFIT AT 1.0756 AND STOP LOSS AT 1.0725

GBPJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 161.182, TAKE PROFIT AT 161.571 AND STOP LOSS AT 161.002

CHFJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 132.947, TAKE PROFIT AT 133.613 AND STOP LOSS AT 132.490

DOW JONES

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 33174.00 TAKE PROFIT AT 33396.00 AND STOP LOSS AT 32825.00

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 118.88 TAKE PROFIT AT 119.23 AND STOP LOSS AT 118.74

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1856.32, TAKE PROFIT AT 1863.34 AND STOP AT 1847.14

BTC USD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 31600.39 TAKE PROFIT AT 31775.83 AND STOP AT 31446.09

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